Former FTX CEO’s defense against $10B fraud.

0 0
Read Time:1 Minute

Ryan Salame, Former FTX Digital Markets CEO, Asserts Innocence in Major Fraud Case

Ryan Salame, the former CEO of FTX Digital Markets, recently made a statement claiming that he had no involvement in the significant fraud that resulted in the loss of over $10 billion for the exchange’s customers. His close companion, Sam Trabucco, who once held a leadership role at Alameda Research, has provided written testimony supporting Salame’s innocence.

Supporting Testimony

In a legal filing on Tuesday, Salame’s legal representatives argued that their client was not part of the inner circle of Sam Bankman-Fried, who was aware of the fraudulent activities in question. They presented letters from Salame’s friends and family members vouching for his kind and compassionate nature. Trabucco referred to Salame as his best friend in a letter to Judge Lewis Kaplan and acknowledged his transgressions, stating that Salame is prepared to face the consequences.

Troy Tsui, another friend and former colleague of Salame’s at Alameda Research, highlighted Salame’s fundamentally decent character. Additionally, Salame’s parents attested to his desire to contribute positively to the lives of others.

Lack of Knowledge Regarding Fraud

Contradictory to allegations, Caroline Ellison, the CEO of Alameda Research and Bankman-Fried’s ex-partner, testified against Bankman-Fried in a fraud trial, stating that they conspired to keep Salame unaware of the fraudulent activities. Ellison admitted that she was aware that FTX could not fulfill all withdrawals during its collapse but was instructed to mislead Salame about the situation.

Salame’s legal team also presented a letter from the Securities Commission of the Bahamas, where Salame was acknowledged for reporting the unauthorized transfer of client assets from FTX to Alameda Research. The commission recognized that such actions could potentially constitute criminal offenses and identified individuals with the authority to make such transfers as Bankman-Fried, Nishad Singh, and FTX co-founder Gary Wang.

Legal Defense

In conclusion, Salame’s legal representatives argued that a sentence of no more than 18 months of imprisonment would be adequate considering the circumstances. Salame’s sentencing hearing is set for May 28.

Image/Photo credit: source url

About Post Author

Chris Jones

Hey there! 👋 I'm Chris, 34 yo from Toronto (CA), I'm a journalist with a PhD in journalism and mass communication. For 5 years, I worked for some local publications as an envoy and reporter. Today, I work as 'content publisher' for InformOverload. 📰🌐 Passionate about global news, I cover a wide range of topics including technology, business, healthcare, sports, finance, and more. If you want to know more or interact with me, visit my social channels, or send me a message.
Happy
Happy
0 %
Sad
Sad
0 %
Excited
Excited
0 %
Sleepy
Sleepy
0 %
Angry
Angry
0 %
Surprise
Surprise
0 %