Former co-CEO of Alameda Research, Sam Trabucco, who left the company before the downfall of cryptocurrency exchange FTX and the subsequent criminal charges against its executives, has appealed for leniency in the sentencing of former FTX Digital Markets co-CEO Ryan Salame.
In a character reference letter dated May 6, which was filed as a recommendation for sentencing in the United States District Court for the Southern District of New York, Trabucco stated that Salame was his closest friend and expressed a desire for the consequences of Salame’s criminal actions to be “fair” considering his involvement in misappropriating FTX user funds. Trabucco emphasized their friendship, which was built on their shared experiences in the crypto space and their work with former FTX CEO Sam “SBF” Bankman-Fried.
Salame pleaded guilty in September 2023 to conspiracy charges related to operating an unlicensed money transmitting business and engaging in campaign finance fraud in connection with his girlfriend Michelle Bond’s congressional campaign. Trabucco mentioned that Salame and Bond now have a child together, and any prison time could negatively impact Salame’s relationship with his family.
Trabucco stated, “Ryan deserves to face the consequences of his actions – he fully understands that. All I ask is for these consequences to be fair – not only for him, but also for the world, which will be greatly worse off without him fully being a part of it.”
Trabucco worked as a trader at Alameda from 2019 and eventually became co-CEO alongside Caroline Ellison in 2021. He resigned in August 2022. Similar to many FTX and Alameda executives, he has maintained a low profile on social media since the collapse of the company.
Unlike Salame, FTX co-founder Gary Wang, former FTX engineering director Nishad Singh, and Ellison, Trabucco has not faced any criminal charges from U.S. authorities. Bankman-Fried was among the few individuals who pleaded not guilty and went to trial, while the other executives accepted plea deals. It remains uncertain whether anyone besides SBF will serve time in prison.
Salame’s legal team recommended on May 14 that he should not serve more than 18 months in prison. The prosecution’s recommendation had not been filed at the time of publication. Judge Lewis Kaplan, who also presided over SBF’s criminal trial, will oversee the sentencing hearing on May 28.
Before Bankman-Fried stepped down and FTX filed for bankruptcy, Salame reported the exchange’s fraudulent activities to the Securities Commission of the Bahamas. Subsequently, SBF was extradited to the United States and faced charges resulting in his conviction on seven felony counts. In March, Judge Kaplan sentenced Bankman-Fried to 25 years in prison. His lawyers have filed an appeal.
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