Sam Trabucco, the former co-CEO of Alameda Research, has written a letter asking 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, described Salame as his best friend and expressed his desire for a fair punishment based on Salame’s role in misappropriating FTX user funds. Trabucco emphasized their shared experiences in the crypto space and working with former FTX CEO Sam “SBF” Bankman-Fried as the basis of their friendship.
In September 2023, Salame pleaded guilty to conspiracy charges related to operating an unlicensed money transmitting business and engaging in campaign finance fraud. Trabucco mentioned that Salame now has a son with his girlfriend Michelle Bond, and any prison time could negatively impact his family relationship.
Trabucco clarified that he believes Salame should face the consequences of his actions but hopes that those consequences will be fair for both Salame and the world, as he believes the world will be worse off without Salame’s presence.
Trabucco worked as a trader at Alameda from 2019 and eventually became co-CEO in 2021 before resigning in August 2022. Unlike Salame, Trabucco has not faced any criminal charges from U.S. authorities. Bankman-Fried, on the other hand, pleaded not guilty and went to trial, while the other FTX executives accepted plea deals. It remains uncertain if anyone other than Bankman-Fried will serve time in prison.
Salame’s legal team has recommended a maximum prison sentence of 18 months, but the prosecution’s recommendation has not been filed yet. The sentencing hearing, presided over by Judge Lewis Kaplan, is scheduled for May 28.
Before the collapse of FTX and Bankman-Fried’s resignation, Salame reported the exchange’s fraudulent activities to the Securities Commission of the Bahamas. Bankman-Fried was later extradited to the United States, charged, and convicted of seven felony counts. In March, Judge Kaplan sentenced Bankman-Fried to 25 years in prison, and his lawyers have filed an appeal.
In light of the FTX collapse, questions have arisen regarding the trustworthiness of crypto exchanges.