Former FTX executive Ryan Salame sentenced to over seven years

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Written on May 29, 2024

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Ryan Salame was sentenced to 90 months in prison for political finance violations other offences.
Salame must pay over $6 million in forfeiture and more than $5 million in restitution.
He was a close associate of FTX founder Sam Bankman-Fried, who is also serving a sentence.

Ryan Salame, former co-CEO of FTX’s Bahamian subsidiary, received a 90-month prison sentence from a US federal court. His offences included violating political campaign finance laws and operating an illegal money-transmitting business.

Salame’s sentence exceeds the prosecutors’ recommendation of five to seven years.

Salame exposed

He pleaded guilty in September, was sentenced to three years of supervised release, and ordered to pay over $6 million in forfeiture and more than $5 million in restitution.

Salame was closely associated with Sam Bankman-Fried, FTX’s founder. Bankman-Fried was sentenced earlier to 25 years for embezzling $8 billion from FTX customers.

Commenting on the verdict, Damian Williams, US Attorney for the Southern District of New York, said:

Salame’s involvement in two serious federal crimes undermined public trust in American elections and the integrity of the financial system.

A jury found Salame guilty in November last year on seven fraud and conspiracy counts related to FTX’s collapse. The case has been described as one of the largest financial frauds in US history.

Salame made significant political contributions to Republican politicians and groups, totalling over $24 million during the 2022 election season. He was one of the top donors that year, according to Federal Election Commission records.

Salame’s counsel argued that he was deceived into believing that FTX was reputable and financially healthy, stating:

He was duped, as was everyone else, into believing that the companies were legitimate, solvent, and wildly profitable.

Guilty pleas and legal fallout

Following Salame, three other senior executives from Bankman-Fried’s companies also pleaded guilty.

These executives include Caroline Ellison, former CEO of Alameda, Gary Wang, former FTX technology chief, and Nishad Singh, former FTX engineering chief.

Before its failure, FTX was among the largest global crypto exchanges. The collapse made Bankman-Fried a notorious figure.

Rumours of FTX’s financial troubles in 2022 triggered a run on deposits, leading to the firm’s collapse and exposing Bankman-Fried’s crimes.

A New York jury found Bankman-Fried guilty last November on multiple charges. His trial exposed his misuse of customer funds for personal and political gains.