Ex-FTX Exec Gets 7.5 Years After Guilty Plea
Ryan Salame, the former co-CEO of FTX Digital Markets, has been sentenced to seven and a half years in prison. This decision came after Salame pled guilty to two felony charges, including conspiracy to operate an unlicensed money-transmitting business and campaign finance fraud. The sentencing took place during a May 28 hearing at the U.S. District Court for the Southern District of New York, presided over by Judge Lewis Kaplan.
Salame admitted to the charges in September 2023 and had been awaiting his sentencing since then. His involvement in FTX’s illegal activities was first reported to the Securities Commission of the Bahamas on November 9, 2022. This disclosure occurred just two days before Sam Bankman-Fried resigned as CEO and FTX filed for bankruptcy. Bankman-Fried himself was subsequently extradited to the United States from the Bahamas and faced conviction on seven felony charges, for which Judge Kaplan sentenced him to 25 years in prison back in March.
In light of Salame’s guilty plea, prosecutors initially recommended a sentence of up to seven years due to his role in misusing FTX user funds and committing fraud in relation to his girlfriend Michelle Bond’s congressional campaign. Salame’s defense team argued for a much lighter sentence of 18 months. They claimed that Salame played a relatively minor role in the broader scheme and was unlikely to reoffend.
Salame’s sentencing marks him as the second individual linked to FTX and the associated Alameda Research to receive prison time, following Bankman-Fried’s sentencing. Apart from Salame and Bankman-Fried, other notable figures from FTX and Alameda, including former Alameda CEO Caroline Ellison, former FTX engineering director Nishad Singh, and FTX co-founder Gary Wang, have all pleaded guilty to various charges. They also testified against Bankman-Fried in his criminal trial. At the time of Salame’s sentencing, the dates for the other individuals’ sentencing hearings had not yet been determined.
Since his guilty plea, Salame has enjoyed relative freedom, being able to travel after posting a $1 million bond. His deal with prosecutors includes substantial financial penalties, totaling approximately $6 million, which he must pay to the U.S. government, and an additional $6 million directed to FTX debtors. Salame is also required to surrender two properties as well as a business as part of this agreement.
During the forfeiture proceedings, Salame’s legal team contended that these penalties would wipe out his assets, leaving him without any remaining wealth. In 2022, Salame was reported to have had a net worth running into the millions. A court filing dated May 27 revealed that he might retain ownership of a 2021 Porsche. The property was reportedly not of sufficient equity value to justify further forfeiture actions from the court.
While the court’s various rulings draw a line under Salame’s criminal proceedings, they also highlight the extensive legal repercussions stemming from the FTX fallout.
The significant sentences meted out, including Salame’s and Bankman-Fried’s, serve as stark reminders of the severe consequences for financial misconduct in the cryptocurrency space.
28 thoughts on “Ex-FTX Exec Gets 7.5 Years After Guilty Plea”
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Significant sentence for Ryan Salame! It’s encouraging to see the importance of ethical conduct emphasized.
This entire case shows how skewed the legal system is. If you have money, you get off easy, and that’s just wrong.
Given the scale of FTX’s collapse, Salame’s sentence feels like a tap on the wrist. He should be behind bars longer.
How did his defense team even suggest 18 months? 🙄 This is a joke. The fraud affected so many people’s lives. 😕
Such a significant case. Salame’s sentencing shows that illegal financial practices have real consequences.
Significant development in the FTX case. Accountability in the crypto world is a must! 💼👏
This is a great example of the legal system working to ensure justice in financial markets.
Really important result for crypto regulation. Lessons to be learned here for everyone! 📚🔍
Wow, 7.5 years! This sends a strong message to everyone in the finance industry.
Only seven years and he still gets to keep a Porsche? Ridiculous! Thats not justice!
Ryan Salames sentence is fair and justice being served properly!
It’s satisfying to see proper action being taken against financial crimes. Here’s to fairness!
Finally, some accountability in the crypto space. Trust in the system is being restored, one case at a time. 🏛️🔍
What a journey it’s been! Salame getting 7.5 years shows that no one is above the law.
Justice has been served! It’s good to see accountability in the crypto world.
This case reinforces the idea that financial crimes won’t go unpunished. Important win for justice!
Sickening how he still had the freedom to travel while awaiting sentencing. People were losing their life savings, and he was on vacation?
Glad to see that the courts are taking such crimes seriously. Here’s to more transparency in crypto.
Only seven years for ruining so many investors’ lives? The justice system is way too soft on financial crimes.
Unbelievable how these white-collar criminals always seem to get away relatively easy compared to others. He should be locked up for longer!
Quite a saga but justice has been delivered. Let this be a lesson to all in the finance sector.
Justice served with Ryan Salame’s sentencing. Every fraudulent action should face the music! 🎭⚖️
Seriously, how can someone so deeply involved in fraud get such a light sentence? The justice system needs reform.
A slap on the wrist for Salame while others get away scot-free. This doesn’t make sense. ?
Why does it feel like the penalties they face are never proportional to the crimes they committed? This needs to change.
Seeing Ryan Salame sentenced gives a sense of closure to all affected by FTX’s collapse.
Salame’s punishment doesn’t match his crime. When will these criminals be held truly accountable? 😒
Salame’s sentencing is a clear warning to anyone in the crypto space: play by the rules or face the consequences.