US government challenges Ryan Salame’s effort to overturn guilty plea

The U.S. government is contesting former FTX executive Ryan Salame's attempt to nullify his guilty plea, which he claims was influenced by misleading promises from prosecutors.

Salame argues that during plea negotiations, prosecutors implied they would not continue investigating his partner, Michelle Bond, for her involvement in related activities.

In a recent filing, the U.S. Attorney’s Office dismissed Salame’s claims as “demonstrably false,” asserting that the investigation into Bond is separate and ongoing.

Salame had been sentenced to 90 months in prison earlier this year after pleading guilty to campaign finance violations and operating an unlicensed money-transmitting business.

On August 21, Salame filed a petition seeking either the dismissal of Bond’s indictment or the vacating of his own conviction.

The government’s response, detailed in an August 26 letter to Judges George B. Daniels and Lewis A. Kaplan of the Southern District of New York, strongly opposes Salame’s petition.

Prosecutors emphasised that Bond’s indictment, which was unsealed on August 22, involves distinct charges related to her 2022 congressional campaign, now referred to as the “Bond Case.”

Salame’s legal team has filed a writ of “error coram nobis,” claiming that his guilty plea was based on government misrepresentations suggesting Bond’s investigation would be dropped if he pleaded guilty.

The government refuted these allegations, arguing that Salame’s guilty plea and Bond’s charges are related to different aspects of the alleged criminal conduct.

Salame’s petition could prompt a reassessment of his plea agreement, which included $6 million in penalties and an additional $6 million to FTX debtors.

If the court rules in Salame’s favor, he could potentially face a full criminal trial, significantly altering his legal battle.

This legal dispute arises as Salame is scheduled to begin his prison sentence on October 13, after a brief delay due to medical issues.

The government has made it clear that their investigation into Bond will continue, regardless of Salame’s plea.

The court hearing for Salame’s petition is set for September 12 before Judge Kaplan, where both sides will present their arguments.

The outcome of this hearing could have far-reaching implications for both Salame’s conviction and Bond’s ongoing prosecution.