Ryan Salame, a former executive at the now-defunct crypto exchange FTX, has been sentenced to seven and a half years in prison. This follows the earlier conviction of FTX co-founder and former CEO Sam Bankman-Fried (SBF), who received a 25-year prison sentence for misappropriating $8 billion from FTX customers. SBF was found guilty in November on seven counts of fraud and conspiracy related to the 2022 collapse of FTX.
Case Background
Ryan Samale was a high-ranking official at Alameda Research, the quantitative cryptocurrency trading firm founded by SBF, from 2019 to 2021. In October 2021, Salame was named co-CEO of FTX’s Bahamian affiliate FTX Digital Markets Ltd. Prosecutors have labeled FTX one of the largest financial frauds in U.S. history. They allege that Salame, Bankman-Fried, and former FTX engineering chief Nishad Singh used customer funds from FTX to make political donations aimed at influencing legislation favorable to the cryptocurrency industry.
In addition to his prison term, Salame, 30, has been sentenced to three years of supervised release and ordered to pay over $6 million in forfeiture and more than $5 million in restitution. “Salame’s involvement in two serious federal crimes undermined public trust in American elections and the integrity of the financial system,” said Damian Williams, U.S. Attorney for the Southern District of New York, in a statement on Tuesday.
Salame was a significant political donor during the 2022 election cycle. According to Federal Election Commission data, he contributed over $24 million to Republican candidates and causes, ranking him among the top donors of that year.
Salame had pleaded guilty to one count of conspiracy to make unlawful political contributions and one count of conspiracy to operate an unlicensed money-transmitting business. His sentencing adds another chapter to the ongoing legal saga surrounding FTX’s collapse and the misconduct of its top executives.
The Crown Witness
Caroline Ellison, the former CEO of Alameda Research and ex-girlfriend of SBF, pleaded guilty to multiple charges in December 2022 and is still awaiting her sentencing. A specific sentencing date has not been scheduled yet. Ellison’s testimony was crucial in the prosecution’s case against SBF, providing evidence. including text messages, documents, and secret recordings that contributed to his conviction on all seven charges. She admitted that Alameda had borrowed significant amounts of money from FTX customer funds under Bankman-Fried’s instructions.
