Sam Trabucco, the former co-CEO of Alameda Research, has written a letter advocating for leniency in the sentencing of Ryan Salame, the former co-CEO of FTX Digital Markets. Trabucco, who resigned from Alameda Research before the collapse of FTX and the ensuing legal troubles, described Salame as his best friend and expressed his desire for fair consequences for Salame’s criminal actions.
Trabucco’s character reference letter, filed with a sentencing recommendation in the United States District Court, emphasized his friendship with Salame and their shared experiences in the cryptocurrency industry, including working with former FTX CEO Sam “SBF” Bankman-Fried.
Salame pleaded guilty to charges of conspiracy to operate an unlicensed money transmitting business and campaign finance fraud in September 2023. Trabucco highlighted that Salame now has a family, including a son with his girlfriend Michelle Bond, and argued that prison time could harm his relationship with them.
While Trabucco has not faced any criminal charges, unlike other FTX and Alameda executives, Bankman-Fried chose to go to trial and pleaded not guilty, while the rest accepted plea deals. It remains uncertain if anyone other than Bankman-Fried will be sentenced to prison.
Salame’s legal team has recommended a maximum prison sentence of 18 months, and the prosecution’s recommendation is pending. The sentencing hearing, presided over by Judge Lewis Kaplan, is scheduled for May 28. Judge Kaplan previously oversaw Bankman-Fried’s trial, where he was convicted and sentenced to 25 years in prison. Bankman-Fried’s lawyers have filed an appeal.
Before FTX’s collapse, Salame reported the exchange’s fraudulent activities to the Securities Commission of the Bahamas, leading to Bankman-Fried’s extradition to the United States. The collapse of FTX has raised concerns about the trustworthiness of crypto exchanges in the industry.