Ryan Salame, former co-CEO of FTX Digital Markets, was sentenced to 7.5 years in prison on May 28 by Judge Lewis Kaplan in the U.S. District Court for the Southern District of New York. This decision comes after Salame pleaded guilty to charges of conspiracy to operate an unlicensed money transmitting business and fraudulent campaign financing in September 2023.
Prosecutors initially sought a prison term of five to seven years, while Salame’s defense requested a mere 18 months. The eventual sentence exceeded expectations from both sides, reflecting the severity of the crimes. Salame’s cooperation with authorities, including his plea deal and testimony against former FTX CEO Sam Bankman-Fried, did not significantly mitigate his punishment.
U.S. Attorney Damian Williams commented, “Salame agreed to advance the interests of FTX, Alameda Research, and his co-conspirators through an unlawful political influence campaign and through an unlicensed money transmitting business, which helped FTX grow faster and larger by operating outside of the law.”
🚨 BREAKING: Ryan Salame of FTX is sentenced to 7.5 years in prison. He additionally was sentenced to 3 years of supervised release and ordered to pay $6M+ in forfeiture and $5M+ in restitution. This sentencing exceeds what the DOJ asked for. pic.twitter.com/2S4W23iJeK
— Autism Capital 🧩 (@AutismCapital) May 28, 2024
Salame’s actions were pivotal in exposing FTX’s fraudulent activities in November 2022, just days before Bankman-Fried resigned as CEO. The downfall of FTX culminated in March 2023 when Bankman-Fried received a 25-year prison sentence.
This case sheds light on the uncertain futures of other close associates of Bankman-Fried, including Caroline Ellison and Nishad Singh, who are also facing legal scrutiny. The heavy sentence handed to Salame signals a stringent stance by the judicial system against those involved in significant cryptocurrency fraud.
