Former FTX executive Ryan Salame could face a prison sentence of five to seven years due to the severity of his criminal actions, according to prosecutors.
Federal prosecutors have advised that Ryan Salame, a former executive of FTX, be sentenced to five to seven years in prison for his role in the downfall of the FTX crypto exchange. In a sentencing memorandum submitted to a federal court in Manhattan, prosecutors stressed the seriousness of Salame’s crimes and argued that a significant sentence is necessary to ensure he receives just punishment, as reported by Bloomberg.
“The campaign finance offense is one of the largest-ever in American history, and the unlicensed money transmitting business exchanged more than $1 billion without proper supervision.”
U.S. prosecutors
Ryan Salame, who admitted to violating campaign finance laws and operating an unlicensed money transmitting business, is scheduled to be sentenced on May 28. Other prominent individuals involved in the scandal, including Caroline Ellison, Nishad Singh, and Gary Wang, are still awaiting their sentencing.
Meanwhile, Salame’s legal team is challenging the recommended sentence, emphasizing his cooperation with authorities.
“He has been a good man who has done much good in this world, who conspired to commit two crimes while in the thrall of a criminal leader.”
Salame’s attorneys
As part of his plea agreement, Ryan Salame consented to forfeit nearly $6 million in assets, including a restaurant in Massachusetts. Salame became part of Alameda Research, FTX’s hedge fund, in 2019 following an encounter with Sam Bankman-Fried at a blockchain conference. He later became the CEO of FTX’s subsidiary in the Bahamas. Prosecutors allege that Salame facilitated FTX’s acceptance of customer deposits through a U.S. bank account without the required licenses. Additionally, the report indicates that Salame acted as a straw donor, channeling millions into political donations.
In November 2022, FTX experienced a collapse, amidst accusations of embezzlement and the misappropriation of billions of dollars in customer funds, allegedly involving its owners and the associated hedge fund, Alameda Research. Sam Bankman-Fried, the founder of FTX, received a 25-year prison sentence and was ordered to repay $11 billion.
In early May, reports emerged revealing that FTX had accumulated significantly more funds than needed to cover its collapse-related losses. FTX CEO John Ray described this outcome as an “unbelievable result,” signifying the exchange’s ability to fully reimburse its more than 2 million customers.
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