Ryan Salame’s legal team has requested that he be sentenced to no more than 18 months in prison, according to court documents filed on May 14. Salame, the former co-CEO of FTX Digital Markets, pleaded guilty to conspiracy to operate an unlicensed money-transmitting business and engaging in campaign finance fraud in September 2023. His sentencing is scheduled for May 28.
In the sentencing memo, Salame’s lawyers argued that he had no knowledge of the conspiracy involving the four individuals at the center of Alameda and FTX who were accused of lying and stealing from customers. They claimed that Salame did not steal from anyone, did not lie to customers, and was deceived into believing that the companies were legitimate and profitable.
Salame reported FTX’s fraudulent activities to the Securities Commission of the Bahamas on November 9, 2022, just two days before former FTX CEO Sam “SBF” Bankman-Fried resigned and the exchange filed for bankruptcy. Bankman-Fried was later extradited to the U.S. and sentenced to 25 years in prison for seven felony counts.
Salame’s lawyers argued that an 18-month sentence was appropriate for him as he played a minor role in the conspiracies he pleaded guilty to and was unlikely to commit similar crimes in the future. They emphasized that Salame has taken full responsibility for his actions, unlike Bankman-Fried.
Salame is expected to be the second figure connected to FTX and Alameda Research to be sentenced, following Bankman-Fried. The fate of former Alameda CEO Caroline Ellison, FTX co-founder Gary Wang, and former FTX engineering director Nishad Singh, who also pleaded guilty to charges and testified in Bankman-Fried’s trial, remains uncertain.
Since his guilty plea in 2023, Salame has been free on a $1 million bond. As part of his agreement with prosecutors, he will have to pay approximately $6 million in penalties to the U.S. government and $6 million to FTX debtors, as well as surrender two properties and a business. According to his lawyers, this will leave him with no remaining assets.
In light of the collapse of FTX, many are questioning the trustworthiness of crypto exchanges.