Former FTX Digital Markets co-CEO, Ryan Salame, has been sentenced to 7.5 years in prison by a federal judge after pleading guilty to two felony charges. The sentencing took place on May 28 in the U.S. District Court for the Southern District of New York, where Judge Lewis Kaplan ordered Salame to serve the prison term for his involvement in conspiracy to operate an unlicensed money-transmitting business and engaging in campaign finance fraud. Salame had admitted to these charges in September 2023 and had been awaiting his sentencing.
U.S. Attorney Damian Williams stated, “Ryan Salame agreed to advance the interests of FTX, Alameda Research, and his co-conspirators through an unlawful political influence campaign and through an unlicensed money transmitting business, which helped FTX grow faster and larger by operating outside of the law.” Williams emphasized that Salame’s involvement in these federal crimes undermined public trust in American elections and the integrity of the financial system. The sentencing serves as a strong message about the severe consequences of such offenses.
Salame had reported FTX’s fraudulent activities to the Securities Commission of the Bahamas on November 9, 2022, just two days before Sam Bankman-Fried stepped down as CEO and the company filed for bankruptcy. 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 had recommended that Salame serve up to seven years in prison for his involvement in misusing FTX user funds and committing fraud related to contributions to his girlfriend Michelle Bond’s congressional campaign. However, his lawyers argued that an 18-month sentence would be more appropriate, as he played a minor role in the conspiracies he pleaded guilty to and was unlikely to commit 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 have all pleaded guilty to charges and testified in Bankman-Fried’s criminal trial. The dates for their sentencing hearings remain unknown at this time.
Since his guilty plea, Salame has been able to travel freely after being released on a $1 million bond. As part of his agreement with prosecutors, he will be required to pay approximately $6 million in penalties to the U.S. government and $6 million to FTX debtors. Additionally, he will have to surrender two properties and a business. Salame’s lawyers have claimed that he will be left with no remaining assets after having a net worth in the millions in 2022. However, a court filing on May 27 indicated that he may retain ownership of a 2021 Porsche, as it does not have sufficient equity for forfeiture.
In other news, it has been reported that Alex Mashinsky, the founder of Celsius Network, is expected to receive a shorter prison sentence compared to Sam Bankman-Fried.