Former FTX Executive Ryan Salame Faces Up to Seven Years in Prison as Prosecutors Emphasize the Gravity of His Criminal Activities

Federal prosecutors have recommended that former FTX executive Ryan Salame serve five to seven years in prison for his involvement in the collapse of the FTX crypto exchange.

Former FTX executive Ryan Salame could face five to seven years in prison, as prosecutors highlight the severity of his offenses.

Federal prosecutors have recommended that former FTX executive Ryan Salame serve five to seven years in prison for his role in the collapse of the FTX crypto exchange. In a sentencing memo filed in federal court in Manhattan, U.S. prosecutors stressed that Salame has committed "serious crimes, and a substantial sentence is required to ensure that Salame receives just punishment," as reported by Bloomberg.

“The campaign finance offense is one of the largest-ever in American history, and the unlicensed money transmitting business exchanged more than $1 billion without proper supervision.”

U.S. prosecutors

Salame, who pleaded guilty to a campaign finance law violation and a charge of operating an unlicensed money transmitting business, is set to be sentenced on May 28. Other key figures in the scandal, including Caroline Ellison, Nishad Singh, and Gary Wang, are still awaiting their sentences.

Meanwhile, Salame's legal team is contesting the sentencing recommendation, highlighting his cooperation with the authorities.

“He has been a good man who has done much good in this world, who conspired to commit two crimes while in the thrall of a criminal leader.”

Salame’s attorneys

As part of his plea deal, Salame agreed to forfeit nearly $6 million in assets, including a restaurant in Massachusetts.

Ryan Salame joined Alameda Research, FTX's hedge fund, in 2019 after meeting Bankman-Fried at a blockchain conference. He later became the CEO of FTX's Bahamas subsidiary. Prosecutors allege that Salame helped FTX accept customer deposits through a U.S. bank account without the necessary licenses. According to the report, Salame also acted as a straw donor, funneling millions in political donations.

FTX collapsed in November 2022 following allegations that its owners and the affiliated hedge fund, Alameda Research, embezzled and misappropriated billions of dollars in customer funds. Sam Bankman-Fried, the founder of the exchange, was sentenced to 25 years in prison and ordered to repay $11 billion.

In early May, reports indicated that FTX had recovered billions more than needed to cover its collapse-related losses, a development that FTX CEO John Ray hailed as an "unbelievable result," suggesting that the exchange could fully repay its over 2 million customers.