Ryan Salame, a former co-CEO of FTX’s Bahamian subsidiary, has been sentenced to 90 months in prison for his involvement in the cryptocurrency giant’s collapse in late 2022. This announcement came from US federal prosecutors, who revealed Salame’s role in violating political campaign finance laws and operating an illegal money-transmitting business.
Salame, described as a top lieutenant to FTX founder Sam Bankman-Fried, pleaded guilty in September last year to charges related to the aforementioned violations. His sentencing follows Bankman-Fried’s own legal troubles, with the FTX founder receiving a 25-year prison sentence earlier this year for embezzling $8 billion from FTX customers.
US Attorney for the Southern District of New York, Damian Williams, emphasized the severity of Salame’s crimes, stating that they undermined public trust in American elections and the integrity of the financial system.
Salame was found guilty by a jury in November last year on seven fraud and conspiracy counts, which prosecutors labeled as one of the largest financial frauds in US history. His sentence, longer than the prosecution’s initial recommendation of five to seven years, also includes three years of supervised release and substantial financial penalties, including forfeiture and restitution payments totaling over $11 million.
Salame is one of four former top executives from Bankman-Fried’s companies to plead guilty to charges, along with Caroline Ellison, Gary Wang, and Nishad Singh. FTX, once one of the world’s largest crypto exchanges, faced a tumultuous downfall in 2022, leading to Bankman-Fried’s conviction on charges including wire fraud and conspiracy to commit money laundering.
The collapse of FTX, fueled by rumors of financial instability, exposed Bankman-Fried’s illicit activities, including misusing customer funds for personal investments and political donations.
