Ryan Salame, former co-CEO of FTX Digital Markets, has been handed a 7.5-year prison sentence by a federal judge after pleading guilty to two felony charges.
The sentencing took place on 28 May 2024 in the US District Court for the Southern District of New York, with Judge Lewis Kaplan presiding over the case. Salame entered a guilty plea in September 2023 and has been awaiting sentencing.
Judge Kaplan ordered Salame to serve 7.5 years in prison for his involvement in a conspiracy to operate an unlicensed money-transmitting business and engaging in campaign finance fraud.
The charges against Salame stemmed from his agreement to promote the interests of FTX, Alameda Research, through an unlawful political influence campaign and an unlicensed money transmitting business.
FTX's Ryan Salame has returned to Twitter for the first time since FTX collapsed — hours after he was sentenced to 7.5 years in prison for his role in the FTX fraud and for his illegal campaign contributions 💀 pic.twitter.com/eoXDLFCyJh
— Molly White (@molly0xFFF) May 28, 2024
Salame Reported FTX’s Fraudulent Activities
Salame had reported FTX’s fraudulent activities to the Securities Commission of the Bahamas on 9 November 2022, just two days before Sam Bankman-Fried stepped down as CEO and the firm filed for bankruptcy.
Bankman-Fried, who was later extradited to the US and convicted on seven felony counts, received a 25-year prison sentence in March 2024 from Judge Kaplan.
Prosecutors had recommended a prison term of up to seven years for Salame due to his involvement in misusing FTX user funds and fraudulent actions related to contributions made to his girlfriend Michelle Bond’s congressional campaign.
His defense argued that an 18-month sentence would be more appropriate, emphasizing that Salame occupied the “lowest rung of the conspiracies” he had pleaded guilty to and was unlikely to engage in similar crimes.
“Ryan Salame agreed to advance the interests of FTX, Alameda Research, and his co-conspirators through an unlawful political influence campaign and through an unlicensed money transmitting business, which helped FTX grow faster and larger by operating outside of the law,” said US Attorney Damian Williams.
“Salame’s involvement in two serious federal crimes undermined public trust in American elections and the integrity of the financial system. Today’s sentence underscores the substantial consequences for such offenses.”
Other FTX Executives Yet to Receive Sentencing
Salame becomes the second individual associated with FTX and Alameda Research to be sentenced following Bankman-Fried.
Former Alameda CEO Caroline Ellison, former FTX engineering director Nishad Singh, and FTX co-founder Gary Wang had all pleaded guilty to charges and testified in Bankman-Fried’s criminal trial. The timing of their sentencing hearings remains unknown at this point.
Since his guilty plea and release on a $1 million bond, Salame has had considerable freedom to travel.
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As part of his agreement with prosecutors, he will be required to pay approximately $6 million in penalties to the U.S. government and an additional $6 million to FTX debtors.
He must also forfeit two properties and a business. During the forfeiture proceedings, Salame’s lawyers contended that he would have “no remaining assets” after previously having a net worth in the millions in 2022.
A court filing on 27 May 2024 revealed that Salame may retain ownership of a 2021 Porsche as it lacked sufficient equity for further forfeiture pursuit.
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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