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Former FTX Executive Ryan Salame Facing 5-7 Year Sentence
U.S. prosecutors are advocating for a 5-7 year prison term for former FTX executive Ryan Salame in connection with his involvement at Sam Bankman-Fried’s (SBF) defunct crypto exchange. Salame, who initially sought an 18-month maximum sentence, admitted guilt to a campaign finance violation and running an unlawful money-transmitting business linked to his position as CEO of FTX’s Bahamian subsidiary, FTX Digital Markets.
Allegations Against Ryan Salame
- Salame facilitated customers to transfer fiat currency to their FTX accounts through U.S.-based bank accounts without complying with federal registration requirements.
- He participated in a straw donor scheme that funneled over $100 million in illegal donations through the American political system.
The court filing stated that the campaign finance violation is one of the largest in American history, and the unlicensed money transmitting business processed over $1 billion without proper oversight, emphasizing the severity of the crimes committed by Salame.
Prosecutors’ Sentencing Memo
SDNY prosecutors submitted a sentencing memorandum requesting 5 to 7 years of federal imprisonment for Ryan Salame, highlighting the need for a significant sentence to ensure appropriate punishment.
Prosecutors also expressed concerns that if Salame receives a lenient sentence, he may engage in further criminal activities in the future, underscoring the importance of a substantial punishment to deter potential future offenses.
Implications for SBF Associates
Ryan Salame is the first FTX executive to face sentencing following SBF’s 25-year prison term and forfeiture of $11 billion. This development follows a fraud trial last fall, where several high-ranking employees of the now-defunct crypto exchange testified against SBF.
Other key figures implicated in the multi-billion dollar crypto scam, including former Alameda Research CEO Caroline Ellison, FTX’s Head of Engineering Nishad Singh, and FTX co-founder Gary Wang, are also facing legal action.
SBF, currently serving his sentence in New York, is expected to be transferred to a prison in California soon, according to recent reports.
Upcoming Sentencing
Ryan Salame’s sentencing is scheduled for Tuesday at 11 a.m. in Manhattan federal court. The sentencing dates for Caroline Ellison, Nishad Singh, and Gary Wang remain uncertain at this time.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
