The US government has countered former FTX executive Ryan Salame’s attempt to withdraw his guilty plea , which he claims was based on misleading statements from prosecutors about their investigation into his partner Michelle Bond.

In a recent legal filing, the US Attorney’s Office dismissed Salame’s claims as “demonstrably false,” emphasizing that the charges against Bond are separate and still under investigation.

Salame, who was sentenced to 90 months in prison earlier this year after admitting to campaign finance violations and running an unlicensed money-transmitting business, filed a petition on Aug. 21, seeking to have Bond’s indictment dismissed or his own conviction overturned.

Salame asserted that during plea negotiations, prosecutors suggested they would not continue investigating Bond, his partner, for her involvement in the same activities.

Government opposed

In a letter to Judges George B. Daniels and Lewis A. Kaplan of the Southern District of New York on Aug. 26, federal prosecutors strongly opposed Salame’s request. The prosecutors argue that the indictment against Bond, which was made public on Aug. 22, includes additional charges and is separate from Salame’s case.

Bond faces charges of engaging in a scheme to make unlawful campaign contributions during her 2022 congressional campaign, an indictment now known as the “Bond Case.”

Salame’s legal team has filed a writ of “error coram nobis,” arguing that his guilty plea was influenced by misleading information from the government, which allegedly implied that Bond’s investigation would be dropped if he pleaded guilty.

The government, however, has refuted this claim, arguing that Salame's guilty plea and the charges against Bond address separate aspects of the alleged criminal activities.

Potential reassessment

Salame's petition could lead to a re-evaluation of his plea deal, which obligated him to pay $6 million in fines and an additional $6 million to FTX creditors. If the court rules in Salame's favor, he could potentially face a full criminal trial, dramatically altering the course of his legal proceedings.

This legal dispute comes at a critical juncture as Salame is set to begin his prison sentence on October 13, after a brief postponement due to health issues. The government has stated unequivocally that their investigation into Bond will continue, regardless of Salame's previous plea.

Salame's request for a new hearing is scheduled for September 12 before Judge Kaplan. Both sides will present their arguments, with the outcome potentially having significant consequences for Salame's conviction and Bond's ongoing prosecution.