Nicholas Mui, 22, from Grand Haven, Michigan, has pleaded guilty in the 17th Circuit Court in Kent County to conducting a criminal enterprise, involving the theft and sale of Mperks account access information. Mui is required to forfeit his computer tower and approximately $630,000 in frozen cryptocurrency and cash. He compromised Mperks, a loyalty program […]
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Salame’s decision to cooperate with authorities and admit to his involvement in the alleged misconduct at FTX comes as a reversal of his earlier stance.
Ryan Salame, a former top executive of the FTX Derivatives Exchange, the now-bankrupt crypto trading platform, has reportedly pleaded guilty to criminal charges in a New York courtroom. The timing of Salame’s guilty plea is especially significant, as it comes less than a month before the scheduled trial of Sam Bankman-Fried (SBF), the former CEO of FTX.
Bankman-Fried has been accused of masterminding one of the largest financial frauds in US history, with prosecutors alleging a web of deceit and manipulation that ultimately led to massive financial losses for investors.
Ryan Salame has pleaded guilty to one count of conspiracy to operate an unlicensed money-transmitting business and one count of conspiracy to make unlawful political contributions and defraud the Federal Election Commission. These charges paint a picture of a complex web of illicit activities that extends beyond the crypto space.
Facing a maximum sentence of 10 years in prison, Salame’s admission of guilt is a significant development in the investigation into FTX’s operations. It raises questions about the extent of his involvement in the alleged wrongdoing and what information he might provide to authorities as part of his cooperation.
The plea deal agreed upon by Salame includes several key provisions. Firstly, Salame has agreed to forfeit a staggering $1.5 billion. Additionally, he will make restitution of $5.6 million to FTX debtors, providing some relief to those who may have suffered financial losses due to the exchange’s actions.
Salame has also agreed to pay $6 million to the US government by his sentencing date, further demonstrating his commitment to making amends for his role in the scandal. As part of the forfeiture, Salame will surrender property in the Berkshires and a 2021 Porsche 911.
Salame’s sentence is scheduled for March 6, 2024, and is likely to be a watershed point in the FTX probe. The information and cooperation he provides to prosecutors could have far-reaching consequences for the case against Sam Bankman-Fried and possibly other people involved in the exchange.
Salame’s decision to cooperate with authorities and admit to his involvement in the alleged misconduct at FTX comes as a reversal of his earlier stance. The former FTX executive had previously indicated that he would invoke his Fifth Amendment rights against self-incrimination if called as a witness against Sam Bankman-Fried at the upcoming trial.
Meanwhile, Salame is not the first insider to cooperate with authorities in the wake of FTX’s collapse and subsequent bankruptcy. Caroline Ellison, the former head of Alameda Research, Bankman-Fried’s hedge fund, Gary Wang, co-founder of FTX, and Nishad Singh, a former engineer at FTX, have all previously pleaded guilty and are assisting prosecutors.
Their cooperation adds weight to the allegations of financial misconduct and wrongdoing surrounding the exchange.
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Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
Roman Storm, a key developer behind cryptocurrency mixer Tornado Cash, pleaded not guilty to several criminal charges, Inner City Press said on Sept. 6.
That report indicates that Storm pleaded not guilty to charges contained within an earlier indictment. Those charges, which were first announced on Aug. 23, include conspiracy to commit money laundering, conspiracy to commit sanctions violations, and conspiracy to operate an unlicensed money-transmitting business.
Following Storm’s plea, prosecutors asserted that Storm, with Tornado Cash, aided the North Korean state hacking organization Lazarus Group. As a coin mixer, Tornado Cash had legitimate privacy applications but could have been used to launder money as well.
During the proceedings, Prosecutors stated that they plan to obtain discovery materials from GitHub and said that they have “multiple terabytes” of Russian-language data from Dutch authorities. Prosecutors also discussed the handling of classified materials with the judge. Prosecutors acknowledged that another accused individual — known to be Roman Semenov based on past reports — remains a fugitive outside of the U.S.
Finally, prosecutors agreed to release Storm on a $2 million bond secured by his Washington residence by Sept. 15. Prosecutors said that they have seized Storm’s Russian passport and that his movement is restricted to parts of the United States.
Proceedings suggest that a trial will occur on Nov. 30.
Inner City Press noted connections to other high-profile cryptocurrency cases. It observed that Assistant U.S. Attorney Thane Rehn, who is a prosecutor in the case at hand, is also a prosecutor in the case against former FTX CEO Sam Bankman-Fried.
Inner City Press further noted that Storm’s lawyer is Brian Klein. Klein previously represented Virgil Griffith, an Ethereum developer who was charged and found guilty of sanctions violations involving North Korea.
All of the above cases are or were handled by the U.S. Attorney’s Office for the Southern District of New York — a division of the Department of Justice (DOJ) that is currently highly involved in prosecuting crypto-related crimes.
The post Tornado Cash developer pleads not guilty to charges of conspiracy, money laundering appeared first on CryptoSlate.
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