Ryan Salame, a high-ranking executive at the now-defunct cryptocurrency exchange FTX, has been sentenced to seven and a half years in prison. This makes Salame the first executive to be imprisoned following the collapse of FTX in November 2022.
The Charges
Salame, who was the head of FTX’s Bahamas subsidiary, was found guilty last year of violating campaign finance laws and operating an unlicensed money transmission business. As one of the four top executives in the FTX empire, he is the first to admit guilt and be sentenced.
The Sentence
Despite defense attorneys requesting an 18-month sentence, the court went beyond the prosecution’s recommendation of five to seven years, sentencing Salame to seven and a half years. Prior to FTX’s collapse, Salame managed the subsidiary in the Bahamas and was known for his extravagant spending, including expensive cars, private jets, and purchasing restaurants in Massachusetts. Additionally, he made over $24 million in political donations, mostly to Republican candidates, during the 2022 U.S. midterm elections.
The Investigation
After FTX’s collapse in November 2022, federal prosecutors searched Salame’s home in Maryland. FTX founder Sam Bankman-Fried was accused of stealing $8 billion from customers and using it for political donations, investment projects, and luxury real estate. Three other top FTX executives—Gary Wang, Nishad Singh, and Caroline Ellison—have admitted to financial crimes and are cooperating with the government, with their own sentences pending.
Admissions and Penalties
In September, Salame admitted to acting as an illegal “straw donor” under Bankman-Fried’s direction, which prosecutors called one of the largest campaign finance violations in American history. As part of his plea, Salame agreed to pay a $6 million fine and over $5 million in restitution, and to forfeit two properties in Massachusetts and a Porsche.
Prosecutors argued that Salame was motivated by greed and the desire for influence. Even as FTX was collapsing, he withdrew $5 million for personal expenses and hired a public relations firm. Hours before the bankruptcy, he withdrew another $600,000 from his account on FTX’s U.S. platform.
Bankman-Fried’s Role
Bankman-Fried was tried last year on fraud and conspiracy charges and sentenced to 25 years in prison. Salame’s attorneys claimed their client was unaware of the extent of Bankman-Fried’s theft from customers, expressing that the news was shocking and distressing for him.
Personal Impact
Salame’s lawyers highlighted the devastating personal consequences he faced, including bringing shame and instability to his family due to FTX’s collapse. Salame, who is in a long-term relationship with former crypto lobbyist Michelle Bond, welcomed their first child in November. Additionally, he has been addressing serious substance abuse issues and plans to attend law school.
Cooperation with Authorities
Unlike Wang, Singh, and Ellison, Salame did not testify against Bankman-Fried in court. However, his lawyers stated that he voluntarily provided documents and assisted the government in preparing its case.
This case marks a significant development in the ongoing fallout from FTX’s collapse, highlighting the severe legal consequences for those involved in financial misconduct within the cryptocurrency industry.
