Ex-FTX Executive Ryan Salame Sentenced 7.5 Years in Jail

As a seasoned crypto investor, I’m deeply troubled by the latest developments regarding Ryan Salame’s sentencing. Salame’s involvement in these alleged offenses, which include political contributions using consumer funds and operating an unregistered money-transmitting business, is truly disheartening.

According to U.S. federal prosecutors, Ryan Salame, a previous co-CEO of FTX’s Bahamian affiliate, received a sentence of 90 months in prison on Tuesday.

Salame received a three-year probation term from Judge Lewis Kaplan of the Southern District of New York’s court. The US Justice Department revealed that aside from this penalty, he was mandated to pay $6 million as a forfeit and over $5 million in compensation.)

Damian Williams, the U.S. Attorney for the Southern District of New York, expressed, “Salame’s actions in committing two federal offenses significantly eroded public faith in the fairness of American elections and the financial system. The handed-down sentence serves as a reminder of the severe penalties attached to such misconduct.”

In the earlier part of this year, Bankman-Fried was convicted and sentenced to serve 25 years in prison for misappropriating approximately $8 billion from FTX customers. In November of last year, a jury reached a verdict on seven charges of fraud and conspiracy linked to the collapse of FTX in 2022 – an incident that is now recognized as one of the most significant financial fraud cases in the United States’ history.

According to the prosecution’s argument, Salame is proposed to serve a prison sentence ranging from five to seven years for his alleged actions. These actions were claimed to have significantly benefited Bankman-Fried’s reputation and contributed to the expansion of FTX.

The prosecution alleges that Salame, Bankman-Fried, and the previous chief engineer of FTX, Nishad Singh, are accused of channeling customer funds from FTX towards politicians who advocated for cryptocurrency-friendly legislation.

In September, Salame admitted guilt for his role in operating an unregistered money-transmitting business and making illegal political donations. He worked alongside Sam Bankman-Fried, the former CEO of FTX, while holding the position of co-CEO at FTX Digital Markets.

Salame aimed for a sentence of up to 18 months in prison. However, his legal team argued that he suffered substantial financial losses when FTX collapsed in November, and he was not among the key figures involved in any deceitful activities.

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2024-05-28 23:00