Former FTX Exec Ryan Salame Gets 7.5 Years In Prison, Ordered To Pay $11 Million
Former FTX Executive Ryan Salame Sentenced To 7.5 Years In Prison
In a major development following the downfall of cryptocurrency exchange them, former executive Ryan Salame has been sentenced to 7.5 years in prison. Alongside the prison term, Salame has been ordered to pay a combined total of $11 million in forfeiture and restitution. This sentencing comes after a hearing held on Tuesday morning, concluding the legal proceedings tied to his involvement in the company’s criminal activities.
Salame initially requested an 18-month prison sentence, whereas U.S. prosecutors recommended a term between five to seven years. His conviction stems from his role at FTX’s Bahamian subsidiary, FTX Digital Markets, where he engaged in illegal money-transmitting operations and unlawful political contributions.
Salame’s Guilty Plea and Refusal to Cooperate
In October 2023, Salame pleaded guilty to charges of operating an illegal money-transmitting business and making unlawful political contributions. Despite his guilty plea, Salame’s refusal to cooperate with federal prosecutors potentially led to a harsher sentence.
“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 U.S. 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”.
Friends Of SBF Await Their Fate For FTX Fraud Scheme
Judge Lewis A. Kaplan, who also sentenced Sam Bankman-Fried (SBF) to 25 years in prison and an $11 billion penalty, imposed Salame’s sentence. SBF, currently being transferred to a prison in California, is appealing his verdict following his October 2023 trial, during which close friends and FTX executives testified against him.
Salame is the first FTX executive outside of Bankman-Fried to be sentenced. He has consistently denied any knowledge of them stealing customer funds.
“As was true for thousands of other FTX employees, customers, investors, and lenders, Ryan lost years of hard work and nearly his entire net worth almost instantaneously,” Salame’s lawyers stated in a recent court filing. “Ryan, who was not part of Sam Bankman-Fried’s innermost circle, was unaware of the crimes at the center of this case.”
Future Sentencings for FTX Executives
Other former them executives, including Head of Engineering Nishad Singh, Alameda Research CEO Caroline Ellison, and co-founder Gary Wang, are expected to face sentencing in the upcoming year.
After serving his prison term, Salame will be required to complete three years of supervised release, adding another layer of accountability following his involvement in the high-profile financial scandal.
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Former FTX Exec Ryan Salame Gets 7.5 Years In Prison, Ordered To Pay $11 Million
Former FTX Executive Ryan Salame Sentenced To 7.5 Years In Prison
In a major development following the downfall of cryptocurrency exchange them, former executive Ryan Salame has been sentenced to 7.5 years in prison. Alongside the prison term, Salame has been ordered to pay a combined total of $11 million in forfeiture and restitution. This sentencing comes after a hearing held on Tuesday morning, concluding the legal proceedings tied to his involvement in the company’s criminal activities.
Salame initially requested an 18-month prison sentence, whereas U.S. prosecutors recommended a term between five to seven years. His conviction stems from his role at FTX’s Bahamian subsidiary, FTX Digital Markets, where he engaged in illegal money-transmitting operations and unlawful political contributions.
Salame’s Guilty Plea and Refusal to Cooperate
In October 2023, Salame pleaded guilty to charges of operating an illegal money-transmitting business and making unlawful political contributions. Despite his guilty plea, Salame’s refusal to cooperate with federal prosecutors potentially led to a harsher sentence.
“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 U.S. 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”.
Friends Of SBF Await Their Fate For FTX Fraud Scheme
Judge Lewis A. Kaplan, who also sentenced Sam Bankman-Fried (SBF) to 25 years in prison and an $11 billion penalty, imposed Salame’s sentence. SBF, currently being transferred to a prison in California, is appealing his verdict following his October 2023 trial, during which close friends and FTX executives testified against him.
Salame is the first FTX executive outside of Bankman-Fried to be sentenced. He has consistently denied any knowledge of them stealing customer funds.
“As was true for thousands of other FTX employees, customers, investors, and lenders, Ryan lost years of hard work and nearly his entire net worth almost instantaneously,” Salame’s lawyers stated in a recent court filing. “Ryan, who was not part of Sam Bankman-Fried’s innermost circle, was unaware of the crimes at the center of this case.”
Future Sentencings for FTX Executives
Other former them executives, including Head of Engineering Nishad Singh, Alameda Research CEO Caroline Ellison, and co-founder Gary Wang, are expected to face sentencing in the upcoming year.
After serving his prison term, Salame will be required to complete three years of supervised release, adding another layer of accountability following his involvement in the high-profile financial scandal.
Read More
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