Former FTX executive Ryan Salame faces potential sanctions after admitting to making false statements during his 2023 guilty plea for campaign finance and money-transmitting crimes.

US District Judge Lewis Kaplan, overseeing the case, expressed concerns about Salame’s earlier testimony, where he denied any promises made by prosecutors to secure his plea.

Concerns of perjury

At the Sept. 12 hearing in Manhattan, Salame acknowledged that he had lied to the court during his plea hearing last year. He had previously testified that federal prosecutors had made no promises to secure his guilty plea.

However, Salame has since claimed that he was told through his attorneys that the government would halt its investigation into his partner, Michelle Bond, if he agreed to plead guilty. This revelation contradicts his earlier testimony, raising concerns of perjury.

Kaplan expressed significant frustration over Salame’s admission and noted that it presents a “big problem.” He explained that the false testimony could undermine the validity of his conviction and sentence since it was based on incorrect information.

Kaplan made it clear that Salame had misled him by initially denying any promises made by prosecutors in exchange for his guilty plea, an action that could lead to further legal consequences — including potentially severe sanctions.

The judge, who previously sentenced Salame to 90 months in prison for his role in the collapse of FTX, said he would need time to determine the appropriate next steps. Additionally, in an unrelated development, Kaplan ordered Salame to report for his sentence on Oct. 11 instead of the previously scheduled Oct. 13 since the latter date is a Sunday.

Bond indictment

The complications surrounding Salame’s case intensified following the indictment of his partner, Michelle Bond, a former candidate for the US House of Representatives. Prosecutors allege that Salame conspired with Bond to make unlawful contributions to her 2022 congressional campaign.

According to court filings, Salame allegedly transferred substantial sums of money from FTX to Bond’s personal bank account, which were then used to fund her political campaign.

Bond was indicted on campaign finance violations in August, a development that occurred shortly after Salame’s legal team requested to vacate his guilty plea. His attorneys had argued that federal prosecutors had not upheld their agreement to end the investigation into Bond.

However, shortly after Bond’s indictment, Salame withdrew his motion to overturn the plea, stating that he no longer intended to pursue that course of action.

Judge Kaplan ordered Salame to appear at the Sept. 12 hearing to clarify the discrepancies in his statements. Despite the recent developments, Salame reiterated that he would not seek to undo his guilty plea.

Salame’s legal team has not commented on the latest developments in his case, while Judge Kaplan indicated he would take time to consider what actions, including possible sanctions, might be warranted.

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But in a 32-page memorandum to U.S. District Court Judge Lewis Kaplan of the Southern District of New York (SDNY) last week, Salame argued that prosecutors had promised him that they would cease any investigations into Michelle Bond, Salame’s long-time partner and mother of his child, as part of his plea deal.

Former President Donald Trump announced that World Liberty Financial (WLFI) will officially launch next week on Sept. 16 during a live stream on X (formerly Twitter).

Trump shared the news on Sept. 12 via a teaser video on social media, where he stated:

“We are embracing the future with crypto and leaving the slow and outdated big banks behind.”

The Trump family, including Eric and Donald Trump Jr., has been involved in WLFI’s development, playing key roles in the project’s direction and strategy

WLFI

WLFI aims to promote the use of US-pegged stablecoins, with a focus on preserving the dollar’s role in global financial markets. The project has partnered with Aave to develop tools and infrastructure that could drive stablecoin adoption across various sectors.

WLFI’s core mission centers on using stablecoins to ensure the US dollar remains the dominant currency for global trade and settlement. In earlier statements, the project outlined its vision of countering foreign currencies that are gaining influence in the global market.

According to the project’s statements, stablecoins can help maintain the dollar’s role as a global financial leader for the foreseeable future. WLFI aims to provide an alternative to emerging digital currencies from foreign states by promoting the adoption of US-pegged stablecoins.

Controversy

WLFI plans to raise $540 million through a token sale, selling 30% of the project’s tokens, while 70% have reportedly been allocated to insiders, which has led to concerns about transparency and fairness.

Additionally, on-chain analysts have noted connections between WLFI and Dough Finance, a previous DeFi protocol that was compromised in a hack earlier this year, adding another layer of controversy.

Meanwhile, the Trump family’s involvement in World Liberty Financial has triggered political discussions, with questions arising about whether the project’s focus is genuinely on decentralized finance innovation or more geared towards personal business interests.

Ethics experts have highlighted concerns over potential conflicts of interest, noting that while the venture may not violate existing legal provisions, it could still pose risks to public trust and the credibility of the political process. Some have also pointed out that Trump’s promotion of his sons’ project might complicate his political ambitions should he seek office again.

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