Former FTX Co-CEO Ryan Salame Sentenced to 90 Months in Prison
Ryan Salame, the former co-CEO of FTX’s Bahamian company, was sentenced to 90 months in jail on Tuesday by a US federal court. Salame pleaded guilty in September to making tens of millions of dollars in illegal campaign payments to groups supported by his former boss, Sam Bankman-Fried, the operator of the now-defunct cryptocurrency exchange.
Sentence Details
The 30-year-old’s sentence exceeds the prosecutors’ recommendation of five to seven years. In addition to the prison sentence, Salame was sentenced to three years of supervised release and forced to pay nearly $6 million in forfeiture and more than $5 million in restitution.
Allegations and Defense
Salame, Bankman-Fried, and former FTX engineering chief Nishad Singh are accused of using FTX customer funds to support political politicians who support crypto-friendly laws. Salame’s counsel contended that he was deceived into believing the company was reputable and financially healthy. “He was duped, as was everyone else, into believing that the companies were legitimate, solvent, and wildly profitable,” they said in a filing before the sentencing earlier this month.
Political Contributions and Charges
Salame made significant political contributions to Republican politicians and groups totalling more than $24 million during the 2022 election season, making him one of the year’s top donors, according to Federal Election Commission records. He pleaded guilty to one count of conspiracy to make illegal political contributions and one count of conspiracy to run an unregistered money-transmitting company.
Legal Perspective
According to US Attorney Damian Williams of the Southern District of New York, Salame’s involvement in two severe federal crimes harmed public trust in American democracy and the integrity of the financial system.
Bankman-Fried’s Case
Salame’s imprisonment comes after Bankman-Fried was sentenced to 25 years in jail for stealing $8 billion from FTX consumers. Bankman-Fried was found guilty in November of seven charges of fraud and conspiracy in connection with FTX’s collapse in 2022, a financial calamity described by prosecutors as one of the greatest frauds in US history.