Former FTX Executive Ryan Salame, Sentenced To 7.5 Years In Prison

Former FTX Executive Ryan Salame was sentenced to 7.5 years in prison (Photo; Doc. Channel103)

JAKARTA Ryan Salame, former co-CEO FTX Digital Markets, a Bahamas-based subsidiary of FTX, has been sentenced to 90 months in prison. This decision was announced by Damian Lewis, United States Prosecutor for New York's Southern District, yesterday.

Salame previously pleaded guilty to two serious charges, namely conspiracy to make illegal political contributions and deceive the Federal Elections Commission, as well as conspiracy to run a money forwarding business without permission. US District Judge Lewis A. Kaplan handed down this sentence after an intense court process.

According to an official press release, Salame served as co-CEO of FTX Digital Markets from 2019 to 2021. His legal team argued that Salame should have been sentenced to no more than 18 months in prison. They sought leniency on the grounds that Salame was the first FTX executive to notify the Bahamas authorities of potential fraud by the end of 2022, just before the company filed for bankruptcy.

However, the US parole authorities recommended a heavier sentence of 10 years in prison. This shows the seriousness of the violations committed by Salame and its impact on public trust in the American elections and the integrity of the financial system.

Files and statements during the court proceedings revealed that Salame is working with Sam Bankman-Fried and other parties to run a money forwarding business without permission. They used FTX, Alameda Research, and North Dimension to transfer customer funds without the right permission.

In addition, Salame allegedly made false statements to US banks to maintain this illegal activity. Since around 2020, Salame, Bankman-Fried, and FTX executive Nishad Singh have been conspiring to contribute campaigns in a way that hides SBF's involvement.

More than 300 illegal political contributions were made, reaching tens of millions of dollars. This contribution aims to improve Bankman-Fried's reputation in Washington, DC, as well as FTX's visibility and gain support from candidates who benefit their interests. Unfortunately, this action involved incorrect reporting to the Federal Elections Commission.

Based on CryptoPotato information, in addition to a prison sentence, the former 30-year-old FTX executive will undergo three years of surveillance following his release. He was also fined more than 6 million US Dollars and ordered to provide restitutions exceeding 5 million US Dollars.

Earlier this year, Sam Bankman-Fried himself received a 25-year prison sentence after being found guilty of using billions of dollars in customer deposits to cover a risky investment made by his hedge fund, Alameda Research.

With this imposition of penalties, public trust in the integrity of the financial system and elections is further emphasized. The crypto industry must pay attention to substantial consequences for violations of the law that undermine trust and integrity.