U.S. prosecutors are seeking a 5-7 year sentence for Ryan Salame, a former executive at FTX, on charges related to his time at the now-defunct crypto exchange. Salame, who previously requested a maximum of 18 months in prison, pleaded guilty to a campaign finance violation and operating an illegal money-transmitting business while serving as the CEO of FTX’s Bahamian subsidiary, FTX Digital Markets. Prosecutors allege that Salame orchestrated efforts to allow customers to send and receive fiat currency through U.S.-based bank accounts without complying with federal registration requirements, and participated in a straw donor scheme involving over $100 million in illegal donations. The court filing described these offenses as serious crimes, necessitating a substantial sentence to ensure Salame faces just punishment.
In a sentencing memorandum filed by the Southern District of New York prosecutors, it was stated that if Salame receives a lenient sentence, he may continue to commit white-collar crimes over the course of his career. The prosecutors argued that despite FTX being defunct, Salame could potentially engage in illegal activities in the future if not adequately punished. Salame is the first FTX executive to be sentenced following the conviction of SBF, the founder of FTX, who was sentenced to 25 years in prison and ordered to forfeit $11 billion after a fraud trial that involved testimony from former high-ranking employees of the crypto exchange.
Other individuals linked to the FTX fraud scheme, including former Alameda Research CEO Caroline Ellison, FTX’s Head of Engineering Nishad Singh, and FTX co-founder Gary Wang, are also facing charges for their involvement. SBF, who is currently serving his sentence at Metropolitan Detention Center in New York, is expected to be transferred to a prison in California soon. Salame’s sentencing is scheduled for Tuesday at 11 a.m. in Manhattan federal court, while the sentencing dates for Ellison, Singh, and Wang are yet to be determined. The prosecutors are pushing for a significant sentence for Salame as a deterrent and to ensure that he faces the consequences of his actions.
