What led to Ryan Salame receiving a sentence surpassing prosecutors’ recommendations?

Former FTX Digital Markets co-CEO, Ryan Salame, has received a sentence of more than seven years in federal prison after pleading guilty to two felony charges. The decision, made by Judge Lewis Kaplan of the U.S. District Court for the Southern District of New York on May 28, exceeded the recommendations of both Salame’s legal team and prosecutors. While the prosecutors suggested a sentence of up to seven years, Salame’s lawyers requested only 18 months. Salame, speaking publicly for the first time since November 2022, acknowledged that the situation was about to become interesting but did not directly reference his sentencing. He also expressed his commitment to staying in the United States, stating that family was more important than anything. Court documents reveal that Salame had a child with his partner, Michelle Bond, in November 2023.


According to Mark Bini, an attorney at Reed Smith and former Assistant U.S. Attorney in the Eastern District of New York, Judge Kaplan’s decision to sentence Salame to 90 months in prison, exceeding the prosecutors’ recommendation, reflects the seriousness with which the judge viewed the fraud at FTX, particularly the multi-million dollar campaign finance fraud scheme in which Salame was directly involved. Bini also noted that the judge did not consider Salame’s production of documents to the government as a sign of cooperation and remorse, despite arguments made by Salame’s counsel.
In recent months, two other prominent cryptocurrency executives, Sam “SBF” Bankman-Fried and Changpeng “CZ” Zhao, have also been sentenced to prison, although their sentences were shorter than what the authorities had requested. Prosecutors recommended up to 50 years for SBF and 36 months for CZ, but the judges imposed sentences of 25 years and four months, respectively.
It remains uncertain whether other individuals connected to FTX and Alameda Research, such as Caroline Ellison, Nishad Singh, and Gary Wang, who have pleaded guilty and cooperated with prosecutors, will also face prison time. These individuals testified at SBF’s trial but their involvement in Salame’s case is unclear.
Salame’s case is unique among the FTX and Alameda executives, as it is the only one involving violations of campaign finance laws during an election year. This political aspect may have influenced Judge Kaplan’s decision to impose a longer sentence. U.S. Attorney Damian Williams mentioned Salame’s “unlawful political influence campaign,” which eroded public trust in American elections.
According to Sunil Kavuri, a U.K. national who testified at Bankman-Fried’s trial, Judge Kaplan may have taken into account the impact of Salame’s actions on FTX victims during sentencing. Prior to SBF’s sentencing, prosecutors submitted numerous statements from individuals who suffered financial and personal losses as a result of the collapse of the crypto exchange.
Bankman-Fried is currently in a federal facility in Oklahoma, reportedly being transferred to a prison in California. Zhao, who was sentenced on April 30, has yet to report to a facility in Oregon or Washington.