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Home»Regulation»Former FTX director withdraws file, claims the US government has broken its promises – Judge will hear anyway
Former FTX director withdraws file, claims the US government has broken its promises - Judge will hear anyway
Regulation

Former FTX director withdraws file, claims the US government has broken its promises – Judge will hear anyway

2024-08-31No Comments3 Mins Read
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Former FTX director Ryan Salame has withdrawn an earlier lawsuit accusing the U.S. government of reneging on its promise not to prosecute his partner, but a judge has scheduled a hearing on the case anyway.

Salame is the former co-CEO of FTX Digital Markets, the Bahamian subsidiary of the bankrupt crypto exchange.

Last year, the former executive pleaded guilty to conspiracy to make unlawful political contributions and to defraud the Federal Election Commission, as well as conspiring to operate an unlicensed money transmission business. In May, a judge sentenced Salame to 7.5 years in prison, and he is due to report to prison in October.

In a lawsuit last week, Salame claimed he made a deal with the government and pleaded guilty to avoid further investigation against the mother of his child, Michelle Bond, a former congressional candidate.

Later that week, Damian Williams, the U.S. Attorney for the Southern District of New York, announced charges against Bond for alleged campaign finance violations related to her failed 2022 run for Congress.

Williams said in a criminal complaint that Salame orchestrated a $400,000 sham payment to Bond from FTX, which Bond allegedly used to finance her campaign.

Salame’s lawyers alleged that the government used the former CEO’s negotiations to threaten Bond and get Salame to plead guilty. Salame first asked the court to dismiss Bond’s charges, but if that didn’t happen, to dismiss his own conviction and guilty plea.

However, the prosecutor shot back, calling Salame’s accusation “demonstrably false” in a response.

“Salame completely omits the fact that the government had a virtual follow-up meeting with Salame’s lawyers on May 25, 2023, to clarify the status of its investigation into Michelle Bond – whom Salame’s lawyers also represented – and to avoid any doubt. , that a guilty plea by Salame would not halt any ongoing investigation into Bond’s conduct.”

In a new document filed Thursday, Salame’s lawyers noted that he withdrew his earlier filing so Bond could raise the issue in her own case.

See also  Bittrex Files US Bankruptcy; will not stop global operations

However, the former FTX director did not recant his previous accusations.

“For the avoidance of doubt, Mr. Salame stands by the facts set forth in the petition and his accompanying affidavit. However, Mr. Salame withdraws the petition so that Ms. Bond can develop the facts and make a ruling in her case.”

On Thursday, District Judge Lewis A. Kaplan scheduled a hearing on the matter for September 12, despite the withdrawal of Salame’s petition. He also ordered the former CEO’s presence in the courtroom.

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