According to ChainCatcher, as reported by The Washington Post, the prison sentences of two former FTX executives appear to have been shortened. According to information from the Federal Bureau of Prisons, Ryan Salame began serving his sentence of 7.5 years in October and is now expected to be released in March 2031. Caroline Ellison's current expected release date is July 2026, which is a few months shorter than her initial two-year sentence.
FTX filed for bankruptcy in 2022 due to questions regarding its financial condition and its relationship with sister trading firm Alameda Research, leading to a rapid withdrawal of funds by customers, similar to a bank run. Authorities later accused FTX of misappropriating customer funds for personal use, to repay loans owed to Alameda Research and for other projects. This scandal resulted in a staggering downfall for FTX, once the third-largest cryptocurrency exchange in the world, and its founder Sam Bankman-Fried (SBF). Ryan Salame, the former co-CEO of FTX's Bahamas subsidiary, admitted to operating an unlicensed money transfer business, violating campaign finance laws. Caroline Ellison, the former CEO of Alameda, pleaded guilty in December 2022 to charges of wire fraud, securities fraud, and money laundering.
