Fourth Top FTX Executive to Plead Guilty Ahead of Sam Bankman-Fried Trial
Fourth Top FTX Executive to Plead Guilty Ahead of Sam Bankman-Fried Trial
FTX filed for bankruptcy in November in a stunning collapse that has become a symbol of crypto industry hubris. With the help of Mr. Salame, Mr. Bankman-Fried had turned FTX into a household name, endorsed by celebrities and politicians. Then the company imploded over a few days, and customers lost more than $8 billion in deposits.
Mr. Bankman-Fried, 31, was arrested in December and charged with seven criminal counts, including wire fraud and securities fraud. He is accused of using billions of dollars in FTX’s customer funds to finance lavish real estate purchases, political donations and investments in other companies. He has pleaded not guilty, and his trial is scheduled to begin on Oct. 3. Last month, Mr. Bankman-Fried’s bail was revoked and he was sent to jail after a judge ruled that he had twice tried to interfere with witnesses in the case.
A spokesman for Mr. Bankman-Fried declined to comment.
For years, Mr. Salame was one of Mr. Bankman-Fried’s top advisers and an enthusiastic public supporter of FTX. A native of the Berkshires, Mr. Salame started working for Mr. Bankman-Fried at Alameda Research, a crypto hedge fund that Mr. Bankman-Fried was running in Hong Kong at the time. When Mr. Bankman-Fried moved FTX to the Bahamas, Mr. Salame was the point person who communicated with the local government.
As FTX grew, Mr. Salame became one of crypto’s wealthiest executives and began using some of his wealth to buy popular restaurants in Lenox, Mass., in the Berkshires. He received $87 million in bonuses and loans from Alameda, according to court records, and was known for his taste for private jets and expensive cars.