Ryan Salame’s legal representatives have requested a maximum prison sentence of 18 months for their client, the former co-CEO of FTX Digital Markets. In a filing with the United States District Court for the Southern District of New York on May 14, Salame’s lawyers argued that, in addition to the substantial restitution and forfeiture obligations proposed by the former FTX executive, an 18-month prison term would be appropriate. Salame pleaded guilty to conspiracy to operate an unlicensed money-transmitting business and engaging in campaign finance fraud in September 2023 and is due to be sentenced by Judge Lewis Kaplan on May 28.
According to Salame’s lawyers, he had no knowledge of the conspiracy involving four individuals at the heart of Alameda and FTX who allegedly deceived and stole from their customers. His legal team claimed that Salame did not steal from anyone, lie to customers, and was deceived, along with everyone else, into believing that the companies were legitimate, financially stable, and highly profitable.
The filing also mentioned that Salame reported FTX’s fraudulent activities to the Securities Commission of the Bahamas on November 9, 2022, just two days before former FTX CEO Sam “SBF” Bankman-Fried resigned and the exchange filed for bankruptcy. Bankman-Fried was later extradited to the U.S. and sentenced to 25 years in prison for seven felony counts in March.
Salame’s lawyers argued that an 18-month sentence was appropriate for their client, as he played a minor role in the conspiracies he pleaded guilty to and was unlikely to commit similar crimes in the future. They also emphasized that Salame has taken full responsibility for his actions, unlike Bankman-Fried, whose case served as a deterrent to others in the cryptocurrency industry.
It is expected that Salame will be the second individual associated with FTX and Alameda Research to be sentenced, following Bankman-Fried. Former Alameda CEO Caroline Ellison, FTX co-founder Gary Wang, and former FTX engineering director Nishad Singh also pleaded guilty and testified in Bankman-Fried’s criminal trial, but it is unclear at this time whether they will receive prison sentences.
Since entering his guilty plea in 2023, Salame has been free on a $1 million bond. As part of his agreement with prosecutors, he will be required to pay approximately $6 million in penalties to the U.S. government and $6 million to FTX debtors, as well as surrender two properties and a business. According to his lawyers, this will leave him with no remaining assets.
In light of the collapse of FTX, many are questioning whether crypto exchanges can still be trusted.