Former FTX Exec. Ryan Salame To Face 7 Yrs Sentencing, Here’s All
Ryan Salame, a former executive at the collapsed cryptocurrency exchange FTX, faces a potential prison sentence of five to seven years. According to recent reports, prosecutors are seeking this substantial penalty due to Salame’s involvement in one of the largest campaign finance offenses in American history. Besides, the prosecutors also blamed his role in operating an unlicensed money-transmitting business.
Prosecutors Seek Severe Penalty For Ryan Salame
Federal prosecutors have called for a significant prison sentence for Salame, emphasizing the severity of his crimes. In a sentencing memo filed in Manhattan federal court, they argued that Salame’s actions warrant a substantial punishment.
Meanwhile, according to a recent Bloomberg report, he pleaded guilty to multiple serious charges, including enabling FTX to accept over $1 billion in customer deposits without proper licensing. Notably, this move was part of a broader scheme that led to FTX’s multibillion-dollar collapse.
However, Salame’s lawyers are advocating for a much lighter sentence of no more than 18 months. They highlight his early cooperation with authorities in the Bahamas and his efforts to alert them about potential fraud within FTX. In addition, they point to his personal circumstances, including his efforts to start anew with his partner and child, and his treatment for substance abuse.
Meanwhile, Salame’s case marks the first sentencing of a top lieutenant of FTX co-founder Sam Bankman-Fried, who himself was sentenced to 25 years in prison earlier this year. Salame, who joined Alameda Research, FTX’s sister hedge fund, in 2019, played a pivotal role in the operations that led to the exchange’s downfall. He moved to the Bahamas in 2021 to become the CEO of FTX’s subsidiary there.
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A Key Figure Behind FTX Collapse
Prosecutors accuse Salame of acting as a straw donor for Bankman-Fried, making substantial political donations to candidates deemed crypto-friendly in the 2022 election. Notably, this political maneuvering was part of the broader scheme to maintain FTX’s favorable position and influence in the regulatory landscape.
Meanwhile, as part of his plea deal, Salame agreed to forfeit $6 million worth of assets to the US government. This includes a restaurant near his hometown in Massachusetts. His sentencing memo also included 28 letters from friends and family, attesting to his character and contributions outside his criminal activities.
Among the supporters was former Alameda Research co-CEO Sam Trabucco, who has remained low-profile since the FTX collapse. In advocating for a lighter sentence, Salame’s attorneys portrayed him as a well-meaning individual who fell under the influence of a manipulative leader.
In addition, they emphasized his remorse and his steps toward rehabilitation and personal improvement. Salame’s sentencing, set for May 28, is a significant moment in the ongoing fallout from FTX’s implosion.
It serves as a stark reminder of the high stakes and severe consequences in the world of cryptocurrency and financial regulation. The case continues to unfold in the Southern District of New York, with the crypto community and regulators alike watching closely.
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