Former FTX Executive Ryan Salame to Serve 7.5 Years in Prison
On Tuesday, judges at the Manhattan court ordered the former FTX executive Ryan Salame to remain behind bars for seven and a half years. The court sentenced Salame for his involvement in crashing of the Bahamian crypto exchange FTX.
Salame was charged alongside former FTX boss Sam Bankman Fried, engineering chief Nishad Singh, and other executives for misusing the company funds and engaging in unlawful activities.
Ex-FTX Official Sentenced for Seven Years
In September, Salame pleaded guilty to operating unlicensed money transmitters and illegally supporting political candidates who supported friendly crypto rules. Salame’s boss will face a 25-year imprisonment for yanking customers’ funds worth over $8 billion.
Bankman Fried pleaded guilty to committing seven criminal charges that impacted the fallout of FTX. The FTX downfall was ranked as one of the largest financial frauds in history.
In his previous court hearing, the defense team representing Salame potrayed their client’s innocence.
The lawyer claimed Salame was tricked into believing the FTX was operating compliantly and was still profitable. The lawyers stated that Salame was not aware that FTX was insolvent.
Citing the damages caused by FTX, the prosecutor requested the court to imprison Salame for five to seven years. The prosecutors noted that Salame stole over $5 million from FTX days before it was declared bankrupt.
FTX Official Found Guilty
Salame’s lawyers refuted the claims and described the proposed sentencing as too harsh for their client. Reflecting on his role at the Bahamian crypto exchange, Salame worked as vice CEO of Bankman Fried.
He was mandated to follow the directives issued by his boss. Even though he engaged in unlawful activities, the attorneys requested that the court show leniency and sentence Salame for not more than 18 months.
In the sentencing memorandum, the prosecutor noted that Salame was unwilling to cooperate with law enforcement. Compared to other FTX officials, the prosecutors stated that Salame’s interactions with the authorities were relatively minor.
The prosecutors noted that other FTX officials, including Alameda Research Carolin Ellison, the company co-founder Gary Wang, and chief engineer Nishad Singh, testified against Bankman Fried. The prosecutor noted that Salame never appeared to testify against his former boss.
On May 28, the US attorney Damian Williams stated that Salame wholeheartedly supported the FTX and its affiliate company, Alameda Research, Williams noted that Salame and other FTX officials engage in illegal political campaigns to promote FTX operation.
The attorney lamented that Salame and his team operated unlicensed money transmitters outside the US. Williams noted that Salame committed two federal crimes that jeopardized public trust in the American Election system and undermined the government’s efforts to restore financial integrity.
Court Allows Ryan Salame to Retain His Porsche
Citing the Federal Commission election data, Williams noted that Salame was among the top donors in the 2022 election.
The report shows Salame donated $24 million to the pro-crypto Republican candidate. The court ordered the 30-year-old FTX official to face a three-year supervised release and settle $6 million forfeiture and around $5 million restitution.
The prosecutors allowed Salame to remain in possession of his luxurious car, the Porsche 911 Turbo S, which he purchased while working at FTX. Salame purchased Porshe 911 at $ 285,000 in 2021.
A close review of Porsche 911 features shows that Salame will still enjoy a good time with his luxurious vehicle the next time he’s on the road.
The Porche 911 offers performance-based modifications, such as a heated steering wheel with a matte aesthetic, among other luxurious features. Salame purchased the Porsche the same time when FTX raised $420 million in a Series B-1 funding round.
The prosecutors noted that the value of Salame’s Porsche lack adequate equity to settle the multi-million penalty. The court is expected to sentence other FTX officials, including Alameda Research CEO, Gary Wang and chief engineer who pleaded guilty last year.
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