FTX Exec Ryan Salame Gets 7.5 Years In Prison

FTX Exec Ryan Salame Gets 7.5 Years In Prison


Good day everybody,

Welcome to CryptoGod-1's blog on all things crypto. In this post I will be looking at the recent news of former FTX executive Ryan Salame being sentenced to 7.5 years behind bars along with an $11 million fine.

 

 

Ryan Salame FTX

The former FTX executive and Sam Bankman-Fried (SBF) associate Ryan Salame received a 7.5 year prison sentence from U.S. District Judge Lewis Kaplan on Tuesday the 28th of May 2024. Salame was co-CEO of FTX's Bahamian subsidiary and a top lieutenant to the bankrupt cryptocurrency exchange's founder SBF. Along with the prison sentence he has also been handed a $11 million in forfeiture and restitution for the actions of his criminal charges at FTX. These fines will include $6 million in forfeiture and more than $5 million in restitution.

The sentence is greater than the five to seven years the U.S. prosecutors had requested, while Salame's lawyers had originally requested an 18-month prison sentence. Back in October 2023 Salame pleaded guilty to conspiracy to make unlawful political contributions and defraud the Federal Election Commission and conspiracy to operate an unlicensed money transmitting business related to FTX, following the FBI raiding his home in April 2023. However, he refused to cooperate with federal prosecutors and this potentially persuaded judge Kaplan to impose the longer-than-recommended sentence for his crimes.

United States Attorney Damian Williams noted:

 

“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. 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.”

 

 

Salame had donated more than $24 million to Republican candidates and causes during the 2022 election cycle, according to Federal Election Commission data, which made him one of that year's top donors. Prosecutors noted that Salame, Bankman-Fried and former FTX engineering chief Nishad Singh made use of FTX customer funds to donate to political candidates supporting crypto-friendly legislation.

As the first TX executive outside of Bankman-Fried to be sentenced for his crimes, Salame's lawyers stated in a recent court filing:

 

“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. Ryan, who was not part of Sam Bankman-Fried’s innermost circle, was unaware of the crimes at the centre of this case.”

 

His lawyers tried to distance him from the FTX fraud by noting he was duped into believing that the companies were legitimate, but ultimately Judge Kaplan, who also sentenced SBF to serve 25 years in prison and an $11 Billion penalty, decided it was not a strong enough reason and Salame will therefore serve his time behind bars. Salame has also been ordered to complete three years of supervised release after his time in prison.

In addition to Salame, FTX’s former Head of Engineering Nishad Singh, Alameda Research CEO Caroline Ellison, and FTX co-founder Gary Wang are all expected to be sentenced sometime in the upcoming calendar year, with many of them having been SBF's closest friends and FTX executives but testified against him during his month long trial in October 2023.

 

 

 

Have a great day.

Peace. CryptoGod-1.

 

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cryptogod-1
cryptogod-1

Writer, designer, creator, and life enthusiast. I love to read and write and enjoy sharing my passion for crypto, sports, literature and everything and anything I can enjoy in life.


CryptoGod-1 : Crypto & Blockchain
CryptoGod-1 : Crypto & Blockchain

Enthusiast here looking to share my ideas, thoughts, analysis, and experience when it comes to all things crypto

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