The US Government Pushes Back Against Former FTX Executive’s Attempt to Void Guilty Plea

The US government has recently responded to former FTX executive Ryan Salame’s attempt to void his guilty plea, claiming it was based on false promises from prosecutors regarding their investigation into his partner Michelle Bond. Salame, who was sentenced to 90 months in prison after admitting to campaign finance violations and operating an unlicensed money-transmitting business, filed a petition seeking to dismiss Bond’s indictment or vacate his own conviction on Aug. 21.

In the filing, the US Attorney’s Office referred to Salame’s allegations as “demonstrably false,” emphasizing that the charges against Bond are distinct and ongoing. The response, outlined in an Aug. 26 letter to Judges George B. Daniels and Lewis A. Kaplan of the Southern District of New York, firmly opposed Salame’s petition. The prosecutors maintain that Bond’s indictment involves additional charges and is separate from Salame’s case.

Salame’s legal team has filed a writ of “error coram nobis,” alleging that his guilty plea was influenced by misrepresentations from the government, which allegedly suggested that Bond’s investigation would be dropped if he pleaded guilty. However, the government refuted the claim, stating that Salame’s guilty plea and the charges against Bond cover different aspects of the alleged criminal activities.

If the court were to side with Salame, it could potentially lead to a reassessment of his plea agreement, which included paying $6 million in penalties and an additional $6 million to FTX debtors. This could also mean that Salame might face a full criminal trial, significantly altering the course of his legal battle.

Salame is scheduled to report to prison on Oct. 13, following a brief delay due to medical complications. The court hearing for Salame’s petition is set for Sept. 12 before Judge Kaplan, where both sides will present their arguments. The outcome of this hearing could have broad implications for both Salame’s conviction and Bond’s prosecution, as the government has made it clear that they plan to continue their investigation into Bond regardless of Salame’s plea.