Former FTX Executive Jailed for Cryptocurrency Giant’s Collapse
NEW YORK CITY — In a stunning turn of events, another former executive of FTX has been sentenced to prison for his role in the cryptocurrency giant’s downfall in late 2022.
Ryan Salame, the former co-CEO of FTX’s Bahamian subsidiary, has been handed a 90-month prison term, according to US federal prosecutors.
Salame, a close associate of the bankrupt crypto exchange’s founder Sam Bankman-Fried, pleaded guilty last September to charges of violating political campaign finance laws and running an illegal money-transmitting business.
Earlier this year, Bankman-Fried himself was sentenced to 25 years in prison for embezzling $8 billion from FTX customers.
“Salame’s involvement in two serious federal crimes has severely damaged public trust in American elections and the financial system’s integrity,” stated Damian Williams, the US Attorney for the Southern District of New York.
A jury convicted Salame in November last year on seven counts of fraud and conspiracy related to FTX’s collapse, which prosecutors have labeled as one of the largest financial frauds in US history.
Salame’s sentence exceeded the prosecutors’ recommended five to seven years.
Along with the prison time, he has also been sentenced to three years of supervised release and ordered to forfeit over $6 million and pay more than $5 million in restitution.
Salame is one of four former top executives from Bankman-Fried’s companies who have pleaded guilty to charges, including former Alameda CEO Caroline Ellison, former FTX technology chief Gary Wang, and former FTX engineering chief Nishad Singh.
FTX, once one of the world’s largest crypto exchanges, collapsed amidst rumors of financial instability in 2022, leading to a mass withdrawal of deposits and exposing Bankman-Fried’s illegal activities.
Bankman-Fried was convicted by a New York jury last year on charges of wire fraud and money laundering conspiracy, revealing how he misused customer funds for personal gain, including real estate purchases, political donations, and other investments. — BBC
