FTX's Ryan Salame Wrapped in Thai Prostitute Scandal
By TH3FUS3 Editorial Staff
September 6, 2024 04:00 AM
Reading time: 1 minute, 43 seconds
TL;DR US prosecutors have linked Ryan Salame, former FTX Digital Markets co-CEO, to dubious activities involving Thai prostitutes. This development is part of efforts to unfreeze accounts tied to FTX and Alameda Research. Salame had previously pleaded guilty to campaign finance violations.
Prosecutors Make Startling Allegations
United States prosecutors in the case against Ryan Salame have allegedly linked the former FTX Digital Markets co-CEO to activities involving Thai prostitutes.
This is part of their efforts to unfreeze accounts tied to FTX and Alameda Research. The allegations surfaced in a Sept. 5 filing in the US District Court for the Southern District of New York.
Legal Proceedings Unfold
US Attorneys filed a memorandum opposing Salame's motion to vacate his guilty plea, which involved charges of campaign finance violations. Salame had already withdrawn his petition to vacate the plea on Aug. 29.
However, Judge Lewis Kaplan scheduled a hearing for Sept. 12 to address the matter. The prosecutors' motion described Salame's petition as "shameless and self-serving" and "procedurally defective and factually and legally meritless."
"The untimeliness of the Petition dovetails with its transparent insincerity and lack of merit," stated the Sept. 5 filing.
Prosecutors accused Salame of making false assertions to evade sentencing for his role in an illegal campaign finance scheme and funneling billions through an unlicensed money-transmitting business.
Connections to Alameda Bribery Scandal
The filing also referenced notes from an April 2023 video conference call with Assistant US Attorneys. These notes suggested former FTX CEO Sam Bankman-Fried bribed Chinese officials to unfreeze funds tied to Alameda locked in local exchanges. Prosecutors alleged Salame was involved in opening accounts using the names of Thai prostitutes.
Former Alameda CEO Caroline Ellison testified that the firm paid a $150 million bribe to Chinese officials to unlock $1 billion in funds frozen in Huobi and OKX accounts in 2021. Prosecutors believe Salame played a role in these efforts, using Personally Identifiable Information about Thai prostitutes to open accounts.
Future Legal Challenges
In September 2023, Salame pleaded guilty to conspiracy to operate an unlicensed money-transmitting business and engaging in campaign finance fraud. He is scheduled to report to prison on Oct. 13 for a 90-month sentence.
Bankman-Fried has been sentenced to 25 years in prison but has filed an appeal. Other former FTX executives, including Caroline Ellison, Nishad Singh, and Gary Wang, have yet to be sentenced.