Salame helped collapse the crypto exchange that stole $10 billion in user funds
US federal prosecutors are seeking a sentence of five to seven years in prison for former FTX executive Ryan Salame, the alleged co-conspirator with FTX co-founder Sam “SBF” Bankman-Fried, who pleaded guilty to crimes that helped cause the collapse of the bankrupt cryptocurrency exchange.
A sentencing memo was submitted in a Manhattan federal court on May 21. Prosecutors solicited the court for a strict sentence after Salame admitted to perpetrating “serious crimes” connected to the misappropriation of FXT investor funds.
US prosecutors are asking for “just punishment” befitting the level of his crimes, with Salame’s attorneys contending that he should serve up to 18 months behind bars.
Federal prosecutors stated, “The campaign finance offense is one of the largest-ever in American history, and the unlicensed money transmitting business exchanged more than $1 billion without proper supervision.”
Salame’s sentence for his role in the fraud that stole $10 billion in user funds is scheduled for May 28. “Only a meaningful period of incarceration could adequately deter the defendant and others and promote respect for the law.” added prosecutors.
Salame rose from his role at Alameda Research in Hong Kong to CEO of FTX Digital Markets in the Bahamas and will be the first of SBF’s co-conspirators to receive a prison sentence. On April 1, SBF was sentenced to 25 years in prison after he was found guilty of seven felony counts.
Three other former FTX executives, Nishad Singh, Caroline Ellison and Gary Wang, are still awaiting sentencing for taking part in the scheme.
