Former FTX Exec Ryan Salame’s Sentencing Set for May 1

Ryan Salame, the former co-CEO of FTX Digital Markets, is set to be sentenced in a New York courtroom on May 1st. This comes after he pleaded guilty to two felony charges relating to his involvement in fraud at the now-defunct cryptocurrency exchange FTX. According to court documents released on February 23rd, Salame will appear before Judge Lewis Kaplan for sentencing on May 1st. The charges he pleaded guilty to include making unlawful political contributions and conspiring to operate an unlicensed money-transmitting business.

Salame was charged in the same case as former FTX CEO Sam “SBF” Bankman-Fried, former Alameda Research CEO Caroline Ellison, FTX co-founder Gary Wang, and former FTX engineering director Nishad Singh. During his court appearance, Salame admitted to making $10 million in political contributions, which he falsely claimed to be loans that he never intended to repay. He was accused of donating to the congressional campaign of his then-girlfriend, Michelle Bond, and making campaign contributions on behalf of a corporation, which is a violation of U.S. law.

The former FTX executive potentially faces a lengthy prison sentence, but there have been reports suggesting that the U.S. Attorney’s Office has proposed probation instead of incarceration. In related news, Bankman-Fried, who was convicted on seven felony counts in November 2023, is scheduled to be sentenced on March 28th. Recently, a photo of Bankman-Fried in jail was released by crypto reporter Tiffany Fong, providing a rare glimpse into his life since his conviction.

It is worth noting that none of the five cryptocurrency executives involved in the downfall of FTX have been sentenced yet. Prosecutors have been pursuing criminal charges against them since November 2022. While Ellison, Wang, Singh, and Salame have all pleaded guilty and accepted plea deals, Bankman-Fried opted to go to trial. Salame was the only one who did not testify against Bankman-Fried during the trial. As part of his plea agreement, Salame will be required to pay around $6 million in penalties to the U.S. government, reimburse $5 million to FTX debtors, and surrender two properties in Massachusetts and a Porsche.

As of now, Salame remains free on a $1 million bond until his sentencing date. The anticipation builds as the crypto executives involved in the FTX case await their respective sentences for their roles in the fraudulent activities at the cryptocurrency exchange.