Key Insights:
- Ryan Salame requests a two-month delay in his prison term due to continued recovery from June’s dog attack injuries.
- Government opposes Salame’s second delay request as his original surrender date for a 7.5-year sentence approaches.
- FTX collapse fallout continues as creditors prepare to receive $6.6 billion in repayments, while Salame awaits court decision.
Ryan Salame, former co-CEO of FTX Digital Markets, has filed a request with the court to postpone the start of his prison sentence for a second time. This time, Salame is asking for an extension until December 7, 2024, citing ongoing medical treatment after an injury from a dog attack in June. The request was submitted just days before his original surrender date, which had already been moved to October 11 from its initial date in August.
Medical Treatment Cited as Reason for Delay
Salame’s legal team argues that the extension is necessary due to his continued need for medical attention. The initial request for a delay was made in August, shortly after the June dog attack, during which Salame sustained injuries to his face that required emergency surgery. The court approved the earlier request, allowing Salame to delay his prison sentence until October 11.
However, in this latest motion, Salame’s attorneys state that he is still undergoing treatment and is not yet physically ready to begin his prison term.
The legal filing reads,
“Salame’s treating physician has advised that Salame needs to be under further treatment to fully recover.”
This has led his legal team to seek another two-month delay.
Government Opposes Further Postponement
While Salame’s legal representatives are pushing for an additional delay, the government has expressed opposition to the request. Prosecutors argue that both parties had agreed in August to the October 11 surrender date and that no further extensions should be granted.
Salame is due to serve a 7.5-year sentence after entering a plea agreement in September 2023. He was convicted on charges related to illegal political contributions and running an unlicensed money transmitting business, both connected to his role at FTX. His sentencing follows the broader fallout from the collapse of the crypto exchange, which was co-founded by Sam Bankman-Fried.
Connection to FTX Scandal and Other Executives
As a key figure in FTX Digital Markets, Salame was part of the leadership team responsible for the exchange’s global operations. His conviction is one of several legal actions taken against former FTX executives as investigations into the collapse of the platform continue.
Salame’s case is closely linked to the broader legal consequences facing other FTX executives, including Caroline Ellison and Nishad Singh, both of whom have also faced legal charges but are still awaiting sentencing.
Meanwhile, Sam Bankman-Fried, the founder and former CEO of FTX, was sentenced to nearly 25 years in prison earlier this year following his conviction on fraud charges.
The collapse of FTX, once one of the largest cryptocurrency exchanges in the world, has left a significant financial impact, with customers and creditors seeking to recover billions in lost funds.
FTX Bankruptcy and Customer Repayments
As Salame continues to navigate his legal situation, the FTX bankruptcy proceedings are still unfolding. U.S. Bankruptcy Judge John Dorsey recently approved a bankruptcy plan that will see FTX’s creditors receive about $6.6 billion in repayments. The first payouts are expected to occur within the next few weeks, bringing some relief to those affected by the exchange’s collapse.
The downfall of FTX has drawn attention across the crypto industry, with various stakeholders examining the factors that led to the platform’s rapid demise. The legal cases against Salame and other former executives are just one part of the ongoing efforts to address the fallout from the exchange’s failure.
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