Ryan Salame, a former top executive at the now-defunct cryptocurrency exchange FTX, has been sentenced to seven and a half years in prison. This marks the first sentencing of a high-ranking deputy following the conviction of FTX’s founder, Sam Bankman-Fried, who was sentenced to 25 years earlier this year.

Key Takeaways

• Ryan Salame sentenced to 7.5 years in prison.
• Salame was a top executive at FTX and co-CEO of FTX Digital Markets.
• He pleaded guilty to campaign finance violations and operating an unlicensed money-transmitting business.
• Salame’s sentence exceeds the five to seven years recommended by prosecutors.
• He was also ordered to pay over $6 million in forfeiture and more than $5 million in restitution.
• Three other high-level FTX executives are awaiting sentencing.

Background

Ryan Salame, 30, was a high-ranking executive at FTX, serving as the co-CEO of FTX Digital Markets, the Bahamian subsidiary of the cryptocurrency exchange. FTX, once one of the world’s largest crypto exchanges, collapsed in November 2022, leaving millions of users unable to access their accounts. The collapse exposed significant financial misconduct by its founder, Sam Bankman-Fried, and other top executives.

Charges and Guilty Plea

Salame pleaded guilty last year to two major charges: violating U.S. campaign finance laws and operating an unlicensed money-transmitting business. He admitted to acting as an illegal “straw donor” to funnel money into political campaigns, using funds provided by Bankman-Fried. This was part of a broader strategy to influence U.S. government policy on cryptocurrencies.

Also read: All FTX Creditors Will Get 118% of Their Funds Back in Cash

Sentencing Details

Federal Judge Lewis Kaplan sentenced Salame to 90 months in prison, exceeding the five to seven years recommended by prosecutors. In addition to the prison term, Salame will serve three years of supervised release. He was also ordered to pay over $6 million in forfeiture and more than $5 million in restitution.

Judge Kaplan criticized Salame for his actions, particularly for withdrawing $5 million in cryptocurrencies from FTX as the exchange was failing. “You tried to withdraw tens of millions more. It was me first. I’m getting in the lifeboat first. To heck with all those customers,” Kaplan said.

Cooperation and Apology

Although Salame did not testify against Bankman-Fried, he cooperated with investigators by providing documents that aided in the prosecution. During the sentencing, Salame apologized to FTX customers and his family, acknowledging that his actions were illegal despite his good intentions. “I fully understand that the means I sought to achieve these goals were illegal,” he said.

Other Executives Awaiting Sentencing

Three other high-level FTX executives are also awaiting sentencing for their roles in the company’s collapse. These include Gary Wang, co-founder of FTX; Nishad Singh, head of engineering; and Caroline Ellison, CEO of FTX’s hedge fund Alameda Research. All three have cooperated with prosecutors and testified against Bankman-Fried in exchange for potentially reduced sentences.

Conclusion

The sentencing of Ryan Salame marks a significant development in the ongoing legal proceedings related to the collapse of FTX. As more executives face their day in court, the full extent of the financial misconduct at one of the world’s largest cryptocurrency exchanges continues to unfold.