Former FTX Digital Markets co-CEO Ryan Salame was sentenced to 7.5 years in prison on May 28th by Judge Lewis Kaplan of the U.S. District Court for the Southern District of New York. Salame pleaded guilty in September 2023 to conspiracy to operate an unlicensed money transmitting business and engaging in campaign finance fraud.
The charges stemmed from Salame’s involvement in using FTX customer funds for illegal campaign contributions and operating an unlicensed money transmitting business to fuel the company’s rapid growth.
“Salame’s crimes undermined public trust in our elections and the financial system,” stated U.S. Attorney Damian Williams. “Today’s sentence reflects the seriousness of his actions.”
Cooperation and Consequences
Salame becomes the second high-profile figure connected to the FTX collapse to be sentenced. Former CEO Sam Bankman-Fried received a 25-year prison term in March for his role in the multi-billion dollar fraud.
Salame reportedly tipped off Bahamian regulators about FTX’s misconduct just days before the company’s implosion. Prosecutors acknowledged his cooperation but argued for a significant sentence due to the severity of the offenses. Salame’s defense team countered, seeking an 18-month sentence, citing his limited involvement and lack of criminal history.
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Uncertainties Remain
Several former FTX executives, including Caroline Ellison, Nishad Singh, and Gary Wang, have also pleaded guilty to related charges. Their sentencing hearings are pending.
Salame’s sentence reflects the ongoing fallout from the FTX collapse. The case serves as a stark reminder of the potential consequences for those who engage in financial misconduct and illegal campaign finance activities. It also highlights the continuing legal proceedings surrounding the defunct cryptocurrency exchange.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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