Ryan Salame, the former co-CEO of FTX Digital Markets, reached a plea deal in September. The U.S. Department of Justice announced on May 28 that he was sentenced to 7.5 years, or 90 months, in prison.
According to the New York Times, Salame plans to turn himself in on August 29, and his lawyers are working to arrange for him to serve his sentence in the federal prison in Cumberland, Maryland. In addition to prison, Salame will also receive three years of supervised release and must pay more than $6 million in fines and $5 million in restitution.
Judge upholds long prison sentence
U.S. Attorney Damian Williams highlighted Salame’s involvement in illegal campaign financing and illegal money transmission operations, noting that the sentence reflects the severity of the penalties for such crimes.
During the ruling, Judge Lewis Kaplan mentioned Salame's personal transactions during the FTX collapse, including the withdrawal of $5 million and $600,000. The judge believed that Salame's actions showed that he prioritized personal interests and ignored the interests of customers.
The judge also pointed out that Salame's political donations posed a threat to American political life. Although Salame's defense team claimed that he knew nothing about Sam Bankman-Fried's fraud and described him as a tool of the former FTX CEO, Judge Kaplan supported the need for a long prison sentence. The New York Times reported that this sentence was longer than the 5 to 7 years requested by prosecutors or the 18 months requested by Salame's defense lawyers.
Salame deeply involved in FTX
Salame’s involvement with FTX is deep. In October 2021, he became co-CEO of FTX Digital Markets, FTX’s arm in the Bahamas. He also held a senior position at FTX’s sister company, Alameda Research, between 2019 and 2021.
Salame conspired with other executives to operate a treasury business without permission, illegally transfer FTX customer funds, and create false bank statements. He also conspired with Bankman-Fried and another former executive, Nishad Singh, to illegally make more than 300 campaign donations totaling tens of millions of dollars.
Salame’s sentencing comes on the heels of Bankman-Fried, who was sentenced to 24 years in prison in March. Other FTX and Alameda Research executives, including Caroline Ellison, Nishad Singh and Gary Wang, have also reached plea deals but have yet to be sentenced.
Conclusion:
Ryan Salame’s sentence reflects the harsh attitude of the U.S. judicial system towards financial crimes and political corruption. As a senior executive of FTX and Alameda Research, Salame’s actions not only harmed the financial security of customers, but also had a negative impact on the political environment in the United States.
This case also reminds other practitioners in the financial industry that the boundaries of the law and the bottom line of morality cannot be ignored. As the trial results of more relevant personnel are announced, the FTX incident will continue to be the focus of discussions on financial regulations and political funding transparency. #FTX #RyanSalame #高管 #司法裁决
