Ryan Salame, a former top executive at the now-defunct cryptocurrency exchange FTX, was sentenced to 7.5 years in prison on Tuesday for his role in the company’s collapse.
Salame, who served as the co-CEO of FTX’s Bahamian subsidiary, pleaded guilty last year to making unlawful campaign contributions and operating an unlicensed money-transmitting business.
TLDR
- Ryan Salame, former co-CEO of FTX’s Bahamian subsidiary, was sentenced to 7.5 years in prison for his role in the collapse of FTX.
- Salame pleaded guilty to making tens of millions of dollars in unlawful campaign donations and operating an unlicensed money-transmitting business.
- He was also sentenced to three years of supervised release and ordered to pay over $11 million in forfeiture and restitution.
- Salame cooperated with prosecutors and provided documents that aided in the prosecution of Sam Bankman-Fried, who was sentenced to 25 years in prison.
- Three other high-level FTX executives, Caroline Ellison, Gary Wang, and Nishad Singh, are awaiting sentencing for their roles in the exchange’s collapse.
The 30-year-old executive was part of the inner circle at FTX, working closely with the exchange’s founder, Sam Bankman-Fried. Prosecutors alleged that Salame, Bankman-Fried, and former FTX engineering chief Nishad Singh used customer funds to make illegal political donations to support crypto-friendly legislation.
In addition to the prison term, Salame was sentenced to three years of supervised release and ordered to pay more than $6 million in forfeiture and over $5 million in restitution.
During the sentencing hearing, Salame apologized to FTX customers and his family, stating that he and others had good intentions but acknowledging that the means used to achieve their goals were illegal.
Salame cooperated with prosecutors and provided documents that aided in the prosecution of Bankman-Fried, who was sentenced earlier this year to 25 years in prison for his role in the $8 billion fraud.
However, Salame was not a major part of the government’s case against Bankman-Fried and did not testify at his trial.
Three other high-level FTX executives, Caroline Ellison, Gary Wang, and Nishad Singh, have also pleaded guilty and are awaiting sentencing for their roles in the exchange’s collapse.
They cooperated with prosecutors and testified against Bankman-Fried in exchange for potentially suspended prison sentences.
The sentencing of Ryan Salame marks the first prison term handed down to a member of FTX’s inner circle and serves as a reminder of the consequences of engaging in unlawful activities within the cryptocurrency industry.
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