Former FTX executive Ryan Salame could face a prison sentence of five to seven years as prosecutors highlight the seriousness of his crimes.
Federal prosecutors have recommended that Ryan Salame, a former executive of the collapsed FTX crypto exchange, serve five to seven years in prison. In a sentencing memo filed in federal court in Manhattan, prosecutors stressed the severity of Salame’s offenses, stating that a significant sentence is necessary to ensure he receives appropriate punishment, as reported by Bloomberg.
“The campaign finance offense is one of the largest-ever in American history, and the unlicensed money transmitting business exchanged more than $1 billion without proper supervision,” prosecutors noted.
Salame, who has pleaded guilty to violating campaign finance laws and operating an unlicensed money transmitting business, is scheduled to be sentenced on May 28. Other key individuals involved in the scandal, such as Caroline Ellison, Nishad Singh, and Gary Wang, are still awaiting their sentences.
In the meantime, Salame’s legal team is challenging the sentencing recommendation, emphasizing his cooperation with authorities. “He has been a good man who has done much good in this world, who conspired to commit two crimes while under the influence of a criminal leader,” his attorneys stated.
As part of his plea deal, Salame agreed to forfeit nearly $6 million in assets, including a restaurant in Massachusetts.
Ryan Salame joined Alameda Research, FTX’s hedge fund, in 2019 after meeting Sam Bankman-Fried at a blockchain conference. He later became the CEO of FTX’s Bahamas subsidiary. Prosecutors allege that Salame helped FTX accept customer deposits through a U.S. bank account without the necessary licenses and acted as a straw donor, funneling millions in political donations.
FTX collapsed in November 2022 amid allegations of embezzlement and misappropriation of billions of dollars in customer funds involving its owners and affiliated hedge fund Alameda Research. Sam Bankman-Fried, the founder of FTX, was sentenced to 25 years in prison and ordered to reimburse $11 billion.
In early May, reports indicated that FTX had amassed enough funds to cover its collapse-related losses, a development FTX CEO John Ray described as an “unbelievable result,” signaling the exchange’s ability to fully reimburse its over 2 million customers.
Summary Review: The case against Ryan Salame underscores the extensive legal repercussions stemming from the collapse of FTX. Prosecutors are pushing for a five to seven-year prison sentence, highlighting the gravity of his crimes involving campaign finance violations and unlicensed money transmission. Despite his cooperation with authorities, Salame’s involvement in one of the largest financial scandals in recent history has led to significant legal consequences. As other key figures await their sentences, the unfolding legal proceedings continue to shed light on the depth of misconduct within the defunct exchange. Meanwhile, FTX’s efforts to recover and reimburse its customers mark a significant step toward resolving the fallout from its collapse.
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