A former top executive of a subsidiary of FTX is reportedly in talks with federal prosecutors to plead guilty to charges related to the collapsed cryptocurrency exchange. He has become the latest former executive to exit from FTX, Sam Bankman-Fried's firm who pleaded not guilty in January.

According to Bloomberg, Ryan Salame, the former Co-Chief Executive at FTX Digital Markets, could take a guilty plea as soon as next month. However, according to the sources who shared information with the publication on the condition of anonymity, it remains unclear whether he will testify against Bankman-Fried.

Ditching Bankman-Fried?

The other former FTX’s top executives, Caroline Ellison, Gary Wang, and Nishad Singh, have since pleaded guilty to playing a role in the exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term's multi-billion dollar fraud. However, Salame has not been charged in connection to the collapsed exchange, and the details of his plea have not been finalized.

Salame could potentially face charges related to the violation of the regulations for political donations. According to Bloomberg, the former executive, who headed FTX’s Bahamas subsidiary, was a megadonor to political parties in the US. He reportedly funded the campaigns of his girlfriend, Michelle Bond, who unsuccessfully vied for the Republican nomination for a seat in the New York Congress.

FTX's Political Donations

Additionally, Salame is believed to have received huge loans from Alameda Research, the hedge fund of FTX. The Prosecutors in the case have accused Bankman-Fried of allegedly directing his former executives to make political donations aimed at influencing policies for the cryptocurrency space.

Besides that, authorities have reportedly traced a private jet purchased by Salame while working for FTX. According to the sources who shared information with Bloomberg, the plane could be surrendered as part of the plea deal or sold to recover customers’ funds. Additionally, Salame reportedly purchased five restaurants in Massachusetts worth USD $6 million after joining the company.

Meanwhile, Finance Magnates reported a week ago that FTX had filed a motion to exclude its Dubai-based subsidiary from the ongoing bankruptcy Bankruptcy Bankruptcy or insolvency constitutes a legal term and refers to being unable to repay debts. A business and a person can declare bankruptcy. When a person or company claims bankruptcy, it is described as a voluntary bankruptcy, and when your debtors force you into bankruptcy, it is referred to as involuntary. A voluntary bankruptcy occurs when the debtor or borrower, the party that owes the money files with the courts. Involuntary bankruptcy happens when your credits file a petition with the co Bankruptcy or insolvency constitutes a legal term and refers to being unable to repay debts. A business and a person can declare bankruptcy. When a person or company claims bankruptcy, it is described as a voluntary bankruptcy, and when your debtors force you into bankruptcy, it is referred to as involuntary. A voluntary bankruptcy occurs when the debtor or borrower, the party that owes the money files with the courts. Involuntary bankruptcy happens when your credits file a petition with the co Read this Term proceedings in the US. This month, the exchange filed a series of court applications proposing a plan to relaunch its offshore operations.