Former FTX Executive Salame Seeks to Overturn Conviction Alleging Breach of Deal on Partner’s Probe

Former FTX executive Ryan Salame has asked a U.S. judge to reconsider his conviction and prevent any potential indictment of his partner, Michelle Bond, alleging prosecutors failed to honor their promise to end the investigation into Bond as part of his plea agreement.

Bloomberg and CNBC first reported on Salame’s court filing, which alleges that federal prosecutors used the threat of continued scrutiny against Bond, a former congressional candidate and mother of his child, to coerce his guilty plea. 

“In an effort to induce Salame’s plea, Government lawyers conveyed that they would discontinue investigating Bond if Salame pleaded guilty, the filing reads. “Considering Salame’s manifest desire to protect Bond, Salame responded by agreeing to enter into a plea agreement.”

Lawyers for Salame argue the government “failed to abide by its word” by resuming its investigation into Bond and “pursuing an indictment against her.”

However, the U.S. Attorney’s Office has reportedly rejected these claims, describing them as self-serving and inaccurate. Prosecutors insist that Salame was explicitly informed that his guilty plea would not halt the investigation into Bond’s conduct.

Lawyers representing Salame told the U.S. Southern District Court of New York, “Relief should be granted because there are serious questions about the lawfulness of the Government’s tactics in trying to induce Salame to plead guilty,” per the filing.

Salame’s allegations come as he prepares to begin his prison sentence later this year.

The former co-head of FTX’s Bahamas subsidiary was sentenced to 90 months in prison for conspiracy to make unlawful political contributions and defraud the Federal Election Commission. He was also found guilty of operating an unlicensed money transmitter business over his involvement in FTX.

His plea deal was part of a broader investigation into the collapse of FTX, a crypto exchange that imploded in November 2022 under allegations of widespread fraud.

Salame did not cooperate with prosecutors, unlike other top FTX executives, including Caroline Ellison, Nishad Singh, and Gary Wang, who testified against founder Sam Bankman-Fried. 

Bankman-Fried, sentenced to 25 years in prison in March, was found guilty of orchestrating one of the largest financial frauds in history, misappropriating billions in customer funds.