• Ryan Salame’s prison sentence was reduced to six and a half years after a federal review of his case.

  • Federal policies for good behavior credits shortened Ryan Salame’s term following his guilty plea in the FTX case.

  • FTX reorganization continues with funds disbursement as former executives face varying sentences.

Ryan Salame, the former executive of the defunct cryptocurrency exchange FTX, has had his prison term reduced. Salame was originally sentenced to 7.5 years in prison for his role in the collapse of FTX. 

https://twitter.com/The_Byteline/status/1872525613812027808

He will now serve just over six and a half years. This change follows an assessment by the Federal Bureau of Prisons which determined his new release date of March 1, 2031.

Good Behavior Credits Shorten Sentence

The reduction in his sentence complies with federal laws that allow prisoners to earn points for good behavior. According to the 2018 First Step Act, qualified offenders may have their sentences reduced by up to 54 days each year for displaying good behavior. The actual reason for the change is unknown, although this provision most likely played a factor.

Salame, who was the CEO of FTX Digital Markets, pleaded guilty in September 2023. He acknowledged making illegal political contributions and operating an unregistered money transmission business. 

Salame attempted to withdraw his guilty plea earlier this year. He claimed that federal prosecutors made specific promises about his partner, Michelle Bond, a former congressional candidate.

Disparity in Sentencing Among FTX Executives

The aftermath of FTX's collapse in November 2022 is still being felt throughout the cryptocurrency industry. While Salame faces years in prison, other FTX leaders have gotten lesser sentences. Caroline Ellison, Alameda Research's former CEO, is serving a two-year term. Nishad Singh and Gary Wang avoided jail entirely by cooperating with prosecutors.

Sam Bankman-Fried was sentenced to 25 years in early 2024. His punishment for the collapse of the exchange is among the toughest.

FTX is reorganizing and repaying its creditors. The company has collaborated with Kraken and BitGo to handle fund disbursements. These efforts are intended to recoup some of the billions of dollars lost after the exchange's collapse.

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