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Crypto

Former FTX Executive Ryan Salame Sentenced to Over 7 Years in Prison

Ryan Salame, a former top executive at the now-defunct cryptocurrency exchange FTX, has been sentenced to 90 months in prison for his involvement in one of the largest financial frauds in U.S. history. Salame, who was the co-CEO of FTX’s Bahamian subsidiary, pleaded guilty to multiple charges, including campaign finance violations and operating an illegal money-transmitting business.

Key Takeaways

  • Ryan Salame sentenced to 90 months in prison.
  • Pleaded guilty to campaign finance violations and operating an illegal money-transmitting business.
  • Ordered to pay over $6 million in forfeiture and more than $5 million in restitution.
  • Salame was a top lieutenant to FTX founder Sam Bankman-Fried.
  • Bankman-Fried was sentenced to 25 years in prison earlier this year.

Background

Ryan Salame was a prominent figure in the cryptocurrency world, serving as the co-CEO of FTX’s Bahamian subsidiary. He was a close associate of Sam Bankman-Fried, the founder of FTX, who was sentenced to 25 years in prison for stealing $8 billion from FTX customers. Salame’s involvement in the fraudulent activities came to light during the investigation into FTX’s collapse in late 2022.

The Charges

Salame pleaded guilty to two major charges:

  1. Campaign Finance Violations: Salame admitted to making tens of millions of dollars in unlawful campaign donations to support causes favored by Bankman-Fried.
  2. Illegal Money-Transmitting Business: He also confessed to operating an unlicensed money-transmitting business, which allowed FTX to accept customer deposits through a U.S. bank account without proper licensing.

Sentencing and Penalties

Salame’s sentence of 90 months in prison exceeds the five to seven years that prosecutors had initially sought. In addition to the prison term, he was sentenced to three years of supervised release. He has also been ordered to pay more than $6 million in forfeiture and over $5 million in restitution.

Other Key Figures

Salame is not the only former FTX executive to face legal consequences. Other top executives, including former Alameda CEO Caroline Ellison, former FTX technology chief Gary Wang, and former FTX engineering chief Nishad Singh, have also pleaded guilty to charges related to FTX’s collapse. They are expected to be sentenced later this year.

The Impact

FTX was once one of the world’s largest cryptocurrency exchanges, attracting millions of customers. Its sudden collapse in 2022 exposed the fraudulent activities of its top executives, leading to significant financial losses for investors and customers. The case has been described as one of the biggest financial frauds in U.S. history.

Conclusion

The sentencing of Ryan Salame marks another chapter in the ongoing fallout from the FTX scandal. As legal proceedings continue against other former executives, the case serves as a stark reminder of the risks and potential for fraud in the rapidly evolving world of cryptocurrency.

Sources