Former FTX Digital Markets Co-CEO Ryan Salame Sentenced to 7.5 Years in Prison –

Ryan Salame, former co-CEO of FTX Digital Markets, was sentenced to 7.5 years in prison by a federal judge after pleading guilty to two criminal charges.

Sentencing took place on May 28, 2024, in the United States District Court for the Southern District of New York, with Judge Lewis Kaplan presiding. Salame pleaded guilty in September 2023 and awaits 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 for his participation in campaign finance fraud.

The charges against Salame stem from his agreement to promote the interests of FTX, Alameda Research, through an illegal political influence campaign and an unlicensed money transfer business.

FTX's Ryan Salame returned to Twitter for the first time since FTX's collapse – hours after being 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 Bahamas Securities Commission on November 9, 2022, just two days before Sam Bankman-Fried has resigned as CEO and the company filed for bankruptcy.

Bankman-Fried, who was later extradited to the United States and convicted on seven counts, was sentenced to 25 years in prison in March 2024 by Judge Kaplan.

Prosecutors had recommended a prison sentence of up to seven years for Salame due to his involvement in the misuse of FTX user funds and fraudulent actions related to contributions made to his girlfriend's congressional campaign. friend Michelle Bond.

His defense argued that an 18-month sentence would be more appropriate, pointing out that Salamé belonged to the “lowest level of conspiracies” to which he had pleaded guilty and was unlikely to commit crimes. similar.

“Ryan Salame agreed to promote the interests of FTX, Alameda Research and his co-conspirators through an illegal political influence campaign and through an unlicensed money transfer business, which helped FTX grow faster and grow by operating outside the law”, said U.S. Attorney Damian Williams.

“Salame’s involvement in two serious federal crimes undermined public confidence in U.S. elections and the integrity of the financial system. “Today’s sentence highlights the far-reaching consequences of such offences.”

Other FTX executives have yet to be sentenced

Salame becomes the second individual associated with FTX and Alameda Research to be convicted after Bankman-Fried.

Former Alameda CEO Caroline Ellison, former FTX chief engineering officer Nishad Singh and FTX co-founder Gary Wang had all pleaded guilty to the charges and testified at Bankman-Fried's criminal trial. The timing of their sentencing hearings remains unknown at this time.

Since his guilty plea and release on $1 million bail, Salame has enjoyed considerable freedom to travel.

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As part of his deal with prosecutors, he will have to pay about $6 million in fines to the U.S. government and another $6 million to FTX Debtors.

He must also give up two properties and a business. During forfeiture proceedings, Salame's lawyers claimed he would have “no remaining assets” after previously having a net worth in the millions as of 2022.

A May 27, 2024 court filing revealed that Salame could retain ownership of a 2021 Porsche because she did not have sufficient equity to pursue the forfeiture suit.

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