Ryan Salame, former co-CEO of FTX’s Bahamian subsidiary, has been sentenced to 90 months in prison for his involvement in the cryptocurrency giant’s collapse in late 2022, according to US federal prosecutors.
Salame, a key figure in FTX’s operations under founder Sam Bankman-Fried, pleaded guilty last September to violating political campaign finance laws and operating an illegal money-transmitting business.
The sentencing follows Bankman-Fried’s own imprisonment earlier this year, where he received a 25-year sentence for embezzling $8 billion from FTX customers.
“Salame’s involvement in two serious federal crimes undermined public trust in American elections and the integrity of the financial system,” stated Damian Williams, US Attorney for the Southern District of New York.
In November last year, Salame was found guilty on seven counts of fraud and conspiracy related to FTX’s collapse, which prosecutors have described as one of the largest financial frauds in US history.
Salame’s sentence, which exceeded the prosecutors’ recommendation of five to seven years, includes three years of supervised release and orders him to pay over $6 million in forfeiture and more than $5 million in restitution.
Salame is among four former top executives of Bankman-Fried’s companies who have pleaded guilty to charges, including former Alameda CEO Caroline Ellison, former FTX technology chief Gary Wang, and former FTX engineering chief Nishad Singh.
FTX, once a leading crypto exchange, faced a run on deposits in 2022 amid rumors of financial trouble, leading to its collapse and the exposure of Bankman-Fried’s criminal activities. His conviction last year revealed how customer funds were misappropriated for personal use, including property purchases and political donations.
