Former FTX executive Ryan Salame, who is accused of being the accomplice of FTX co-founder Sam “SBF” Bankman-Fried, is being sought by United States prosecutors to serve a prison sentence of five to seven years. These prosecutors believe that Salame’s actions ultimately led to the collapse of the FTX cryptocurrency exchange. The prosecutors filed a sentencing memo on May 21, in which they demanded a strict punishment for Salame after he pleaded guilty to committing serious crimes involving the misappropriation of FTX investors’ funds. Salame’s defense lawyers argue that he should only serve a maximum of 18 months.
In the court filing, the U.S. prosecutors emphasized the need for a just punishment that matches the magnitude of Salame’s crimes. They stated that only a significant period of incarceration would effectively deter the defendant and others from engaging in similar activities, while also promoting respect for the law. Salame’s sentencing hearing, related to his involvement in helping SBF embezzle $10 billion of users’ funds, is scheduled for May 28. If convicted, Salame will be the first accomplice of SBF to be sentenced.
Salame initially joined Alameda Research in Hong Kong in 2019 and eventually rose through the ranks to become the CEO of FTX Digital Markets, a subsidiary of FTX based in the Bahamas. Other prominent individuals involved in the FTX scam, including Caroline Ellison, Nishad Singh, and Gary Wang, are still awaiting sentencing.
Meanwhile, several U.S. lawmakers are backing a bill called the Financial Innovation and Technology for the 21st Century (FIT21) Act, which aims to clarify the regulatory roles of the country’s financial authorities in relation to digital assets. The goal of this bill is to prevent future incidents like the FTX collapse. Representative Wiley Nickel from North Carolina is urging fellow lawmakers to support the passage of this bill, as it would provide clarity on how the Securities and Exchange Commission and Commodity Futures Trading Commission oversee the crypto industry.
In other news, there is a documentary on Amazon Prime about the FTX collapse, which costs $2,500 to watch. Interestingly, the production of this documentary received assistance from the filmmaker’s mother.