A federal judge handed down a sentence of over seven years in prison to Ryan Salame, a former FTX executive. This marks the first time that one of the close associates of the infamous cryptocurrency magnate, Sam Bankman-Fried, has been given jail time for their involvement in the 2022 downfall of the cryptocurrency exchange.
Salame, who held a prominent position at FTX for a significant period of time, including serving as the co-CEO of FTX Digital Markets, admitted his guilt in 2020. His charges included illegally making campaign contributions in the United States and running an unlicensed money-transmitting business.
Salame was sentenced to 7 1/2 years in prison, with an additional three years of supervised release. This exceeded the prosecution’s request for a sentence of five to seven years, as outlined in their pre-sentencing memo, according to Judge Lewis A. Kaplan.
During Bankman-Fried’s trial, Salame, although a high-level executive at FTX, was not a significant factor in the government’s case against Bankman-Fried. Salame did not testify against him. However, during the sentencing hearing, Salame sought leniency by stating that he cooperated with the authorities. He even provided documents that assisted prosecutors in questioning Bankman-Fried and in his own prosecution.
Salame acted as a channel for Bankman-Fried to make illicit campaign donations, which aimed to influence U.S. cryptocurrency policies. In addition to concealing the financial shortcomings of FTX, these contributions were made to further Bankman-Fried’s agenda. While Bankman-Fried primarily supported Democrats and causes with liberal leanings, Salame directed his contributions towards Republicans and right-leaning causes.
However, it was Bankman-Fried who ultimately provided the funds for Salame’s contributions.
Salame’s actions were deliberate and calculated, according to Kaplan, who expressed his disbelief at the fact that Salame intentionally concealed his actions from the public eye. This revelation is nothing short of astounding!
Salame was also scolded by the judge for withdrawing $5 million in cryptocurrencies from FTX while the exchange was experiencing financial difficulties.
Kaplan exclaimed that he was the first one to try to withdraw tens of millions more. He stated, “It was me first. I’m getting in the lifeboat first. To heck with all those customers.”
Salame expressed his apologies to FTX customers and his family, acknowledging that he and others had good intentions. However, he acknowledged that the methods he used to achieve these goals were illegal.
Salame, in his pre-sentencing statement, expressed his commitment to embarking on a journey towards redemption.
He expressed his acceptance of what comes next.
Caroline Ellison, the former CEO of the FTX hedge fund Alameda Research, Gary Wang, the co-founder of FTX, and Nishad Singh, FTX’s head of engineering, are among the three other high-level executives awaiting sentencing for their involvement in the collapse of the exchange. In order to potentially receive suspended prison sentences, all three individuals collaborated with prosecutors and provided testimony against Bankman-Fried during the trial.
