The sentence exceeds prosecutors’ recommendation for Ryan Salame, a former FTX executive, who they proposed imprisoning for five to seven years. Salame’s legal team advocated for a much lighter sentence, no more than 18 months.
According to U.S. Attorney Damian Williams, Ryan Salame’s actions involved advancing the interests of FTX, Alameda Research, and his co-conspirators through unlawful means, including a political influence campaign and an unlicensed money transmitting business. These activities, which operated outside the bounds of the law, facilitated FTX’s rapid growth. Williams emphasized that Salame’s participation in these federal crimes eroded public confidence in U.S. elections and the financial system’s integrity. Today’s sentencing serves as a reminder of the severe repercussions associated with such misconduct.
Salame’s primary defense contention was that, like others, he fell victim to the fraud at FTX and the deceptive nature of his association with Bankman-Fried, according to Bloomberg.
In their initial appeal, Salame’s attorneys depicted him as a previously upstanding individual who had contributed positively to society but became ensnared in criminal activity while under the influence of a corrupt leader.
Salame admitted guilt to breaching campaign finance regulations and running an unlicensed money transmission enterprise. Additionally, he confronted accusations of conspiring to make illicit political donations.
Salame’s background
Ryan Salame became part of Alameda Research in 2019 after connecting with Bankman-Fried at a blockchain conference. At Alameda Research, the hedge fund affiliated with FTX, he utilized advanced technology and a trading platform to trade various digital assets, spanning major coins, NFTs, and altcoins. Moreover, Salame took on the CEO position at FTX’s subsidiary in the Bahamas.
In 2022, FTX experienced a crash attributed to fund mismanagement, inadequate liquidity, and a surge in withdrawal requests. Consequently, FTX filed for bankruptcy, unable to manage its customer transactions adequately due to insufficient liquidity.
Moreover, the exchange unlawfully utilized customer funds and provided illegal funding for loans and Alameda Research projects. Prosecutors allege that Salame assisted FTX in accepting customer deposits via a U.S. bank account without possessing the necessary licenses.
Further legal proceedings
Earlier this year, as a component of his plea agreement, Salame consented to forfeit assets valued at almost $6 million, which encompassed a restaurant located in Massachusetts.
In early May, reports emerged suggesting that FTX had amassed billions of dollars beyond what was required to safeguard customers from potential losses. Additionally, FTX’s estate finalized the sale of deeply discounted Solana tokens, totaling $2.6 billion in value.
Caroline Ellison and Gary Wang, along with other implicated individuals in the scandal, are still awaiting sentencing.
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