A former co-CEO of FTX Digital Markets, Ryan Salame, has been sentenced to 7.5 years in prison by a federal judge. Salame pleaded guilty to two felony charges and was awaiting sentencing since September 2023. The charges include conspiracy to operate an unlicensed money-transmitting business and engaging in campaign finance fraud. The judge, Lewis Kaplan, issued the sentence in a hearing on May 28 in the U.S. District Court for the Southern District of New York.
According to U.S. Attorney Damian Williams, Salame’s actions were aimed at advancing the interests of FTX, Alameda Research, and his co-conspirators through unlawful political influence and operating an unlicensed money transmitting business. These activities allowed FTX to grow outside the boundaries of the law, which undermined public trust in American elections and the integrity of the financial system. The judge’s sentence reflects the severe consequences of such offenses.
Salame had previously reported FTX’s fraudulent activities to the Securities Commission of the Bahamas on November 9, 2022, just days before the resignation of Sam Bankman-Fried as CEO and the company’s bankruptcy filing. Bankman-Fried was later extradited from the Bahamas to the U.S. and convicted of seven felony counts. In March, Judge Kaplan sentenced him to 25 years in prison.
Prosecutors recommended a maximum sentence of seven years for Salame due to his involvement in misusing FTX user funds and fraudulent campaign contributions to his girlfriend’s congressional campaign, Michelle Bond. However, Salame’s defense argued that a sentence of 18 months was more appropriate, considering his role as the least involved conspirator and the unlikelihood of him committing similar crimes in the future.
Salame is the second individual connected to FTX and Alameda Research to be sentenced following Bankman-Fried. Former Alameda CEO Caroline Ellison, former FTX engineering director Nishad Singh, and FTX co-founder Gary Wang all pleaded guilty to charges and testified in Bankman-Fried’s trial. The timing of their sentencing hearings is currently unknown.
As part of his deal with prosecutors, Salame will have to pay approximately $6 million in penalties to the U.S. government and $6 million to FTX debtors. He will also surrender two properties and a business. Salame, who has been allowed to travel since his guilty plea on a $1 million bond, will be left with no remaining assets after forfeiting his properties. However, there is a possibility that he may retain ownership of a 2021 Porsche due to insufficient equity for forfeiture.
In other news, according to Inner City Press and X Hall of Flame, there are indications that Alex Mashinsky, the founder of Celsius Network, will receive a shorter jail sentence compared to Sam Bankman-Fried.