Ex-FTX executive Salame receives over 7-year prison sentence

A former executive of FTX, Ryan Salame, has been sentenced to 90 months in prison for his role in the cryptocurrency giant’s implosion in late 2022. Salame, who was the co-CEO of FTX’s Bahamian subsidiary, pleaded guilty to violating political campaign finance laws and operating an illegal money-transmitting business.

His sentence comes after FTX founder Sam Bankman-Fried was sentenced to 25 years in prison for stealing $8 billion from FTX customers earlier this year. Salame’s involvement in these crimes undermined public trust in American elections and the financial system, according to US Attorney Damian Williams.

A jury found Salame guilty on seven fraud and conspiracy counts stemming from FTX’s failure, which prosecutors have called one of the biggest financial frauds in US history. Despite prosecutors seeking a shorter sentence, Salame was sentenced to 90 months in prison, three years of supervised release, and ordered to pay over $6 million in forfeiture and more than $5 million in restitution.

Salame is one of four former top executives from Bankman-Fried’s companies to plead guilty to charges, highlighting the extent of the wrongdoing within FTX. The cryptocurrency exchange was once one of the world’s largest before its demise, attracting millions of customers to buy and trade cryptocurrency on its platform.

Rumours of financial trouble led to a run on deposits in 2022, ultimately resulting in FTX’s collapse and the exposure of Bankman-Fried’s crimes. He was convicted on charges including wire fraud and conspiracy to commit money laundering, revealing how he had used customers’ money for personal gain.

The downfall of FTX serves as a warning about the dangers of unregulated cryptocurrency exchanges and the importance of trust and transparency in financial institutions. The sentences handed down to Salame and Bankman-Fried send a clear message that fraudulent behavior will not be tolerated, reaffirming the need for accountability in the world of cryptocurrency.

Back To Top