- Ryan Salame received a 7.5-year prison sentence for campaign finance violations and operating an unlicensed money-transmitting business.
- Sam Bankman-Fried was sentenced to 25 years for misappropriating FTX funds, contributing to the company’s collapse.
- Four former executives, including Caroline Ellison and Gary Wang, admitted guilt to related charges.
After the collapse of the cryptocurrency exchange FTX in late 2022, Ryan Salame, the former co-CEO of their Bahamian subsidiary, was sentenced to 7.5 years in prison by US federal prosecutors. This is another legal development stemming from the FTX insolvency.
Prior to this year’s sentencing of Sam Bankman-Fried, the founder of the now-bankrupt FTX, Ryan Salame, a former senior executive, pleaded guilty last September to campaign finance violations and operating an unlicensed money-transmitting business. Bankman-Fried received a 25-year sentence earlier this year for allegedly misappropriating funds from FTX.
US Attorney Damian Williams for the Southern District of New York expressed concerns in a statement that Ryan Salame’s criminal actions undermined public confidence in the US campaign finance system and the broader financial sector.
Salame’s conviction on fraud and conspiracy charges last November, linked to the FTX collapse, was the result of what prosecutors describe as one of the most significant financial frauds in US history.
Salame received a sentence exceeding the prosecution’s recommended range of five to seven years, with a final ruling of 7.5 years in prison followed by three years of supervised release. He was also ordered to forfeit over $6 million and pay more than $5 million in restitution.
Four former senior executives from Sam Bankman-Fried’s companies have admitted guilt to related charges. These individuals include Caroline Ellison, the former CEO of Alameda Research; Gary Wang, the head of FTX’s technology division; Nishad Singh, the former head of engineering at FTX; and Constance Salame, another former executive who pleaded guilty.
FTX, once a leading global cryptocurrency exchange, gained prominence under Sam Bankman-Fried’s leadership. He became a notable figure in the industry, attracting a large customer base for buying and selling crypto on the platform. However, concerns about FTX’s financial stability emerged in 2022, leading to a surge in customer withdrawals and ultimately the company’s collapse. These events also exposed alleged misconduct by Bankman-Fried.
Last year, a New York jury found Bankman-Fried guilty of charges including wire fraud and money laundering conspiracy. The trial revealed that customer funds were allegedly misused for personal property purchases, political donations, and other investments.
