Salame had previously pleaded guilty to conspiracy charges involving unlawful and illicit activities, aiming to get leniency from the court and a reduced prison term of 18 months.
Ryan Salame, the former executive of FTX, a once-leading cryptocurrency exchange, has been sentenced to 7.5 years in prison, with a fine of $11 million ($6 million in forfeiture and $5 million in restitution).
The sentencing comes after the former FTX boss, Sam Bankman-Fried, was also sentenced to 25 years in prison, three years of supervised release, and $11 billion in forfeiture for defrauding FTX’s investors of more than $1.7 billion.
Salame Guilty Plea and Conspiracy
During the court proceedings, Salame pleaded guilty to conspiracy charges concerning unauthorized political contributions and the operation of an unlicensed money transmitting business, as highlighted by the U.S. Attorney’s Office Southern District of New York.
“Ryan Salame agreed to advance the interests of FTX, Alameda Research, and his co-conspirators through an unlawful political influence campaign and through an unlicensed money transmitting business, which helped FTX grow faster and larger by operating outside of the law,” U.S. Attorney Damian Williams said.
Salame had previously pleaded guilty to conspiracy charges involving unlawful and illicit activities, aiming to secure leniency from the court and a reduced prison term of 18 months.
In their plea for leniency and a reduced sentence, Salame’s legal representatives highlighted that he encouraged the FTX investigation, collaborated with U.S. authorities, and now struggles with enduring stigma resulting from FTX’s collapse.
The U.S. Attorney noted that Saleme, as a senior executive at Alameda Research and co-CEO of FTX Digital Markets, collaborated with others to transfer customer funds unlawfully.
“Salame’s involvement in two serious federal crimes undermined public trust in American elections and the integrity of the financial system. Today’s sentence underscores the substantial consequences for such offenses,” U.S. Attorney Williams added.
Salame Illegal Stunt
In 2020, Salame conspired with Bankman-Fried and FTX executive Nishad Singh to make campaign contributions that concealed Bankman-Fried’s involvement with some donations.
These contributions aimed to enhance Bankman-Fried’s reputation in Washington, D.C., elevate FTX’s profile, and gain favor with candidates who could support legislation beneficial to FTX, Alameda, or Bankman-Fried’s interests.
Altogether, Salame and his partners made over 300 political contributions, amounting to tens of millions of dollars, which were unlawful because they were made under a false donor’s name or funded with corporate money, leading to false information being reported to the Federal Election Commission by campaigns and political action committees.
Meanwhile, former FTX executives Caroline Ellison and Gary Wang also pleaded guilty and pursued plea deals to avoid jail sentences. .