Ryan Salame, once a high-ranking executive at the cryptocurrency exchange FTX, has been sentenced to more than seven years in prison for fraud charges and conspiracy to operate unlicensed money-transmitting business, the Financial Times reported.
Salame's Guilty Plea and Sentencing
Ryan Salame, aged 30, pled guilty to election fraud charges and conspiracy to operate an unlicensed money-transmitting business. His crimes were linked to Sam Bankman-Fried’s crypto empire FTX, which crumbled in late 2022. Salame is among four former top FTX managers who admitted guilt, joining Caroline Ellison, Nishad Singh, and Gary Wang. However, unlike his colleagues, Salame did not testify against Bankman-Fried.
In March, Bankman-Fried was sentenced to 25 years in prison for embezzling billions from FTX customers and investors. Salame's lesser but still significant sentence reflects his role in facilitating unlawful political donations and other financial irregularities.
Salame joined Alameda Research, an affiliate of FTX, in 2019 and later became Co-Chief executive of FTX’s Bahamian branch. He played a key role in FTX’s political contributions, acting as a "straw donor" to channel over $100 million into US political campaigns ahead of the 2022 midterm elections. These donations aimed to obtain favor with both major political parties.
Salame admitted that these funds came from an Alameda subsidiary and were categorized as loans he never intended to repay. His activities involved meeting with high-profile politicians, including Republican Senator Mitch McConnell and former Congressman Kevin McCarthy.
Prosecutors and Defense Arguments
Prosecutors argued for a seven-year sentence, emphasizing the gravity of the offense of financing political campaigns, which involved more than 300 donations. They described it as "one of the largest-ever in American history." Salame ultimately received a 90-month prison sentence.
Salame’s lawyers had sought a lighter sentence, no more than 18 months, arguing that Salame was as shocked as anyone by FTX’s fraudulent activities. They contended he was not part of Bankman-Fried’s closest circle and did not anticipate the collapse of the crypto giant.
Damian Williams, the US Attorney in Manhattan, underscored the broader impact of Salame’s actions. He stated that Salame’s crimes significantly aided FTX’s rapid growth by circumventing legal boundaries, thereby eroding public trust in American elections and the financial system.
Last year, US authorities reportedly traced a private jetthat Salame purchased while at FTX. Sources indicated that the jet was to be included in the plea deal, either being surrendered or sold to help recover customers' funds. Besides that, Salame is said to have bought five restaurants in Massachusetts, valued at USD $6 million, after he joined the company.
This article was written by Jared Kirui at www.financemagnates.com.
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