Former FTX Digital Markets co-CEO Ryan Salame has been handed a 7.5-year prison sentence by a federal judge. This comes after Salame pleaded guilty to two felony charges. The sentencing took place on May 28 in the U.S. District Court for the Southern District of New York, where Judge Lewis Kaplan ordered Salame to serve the prison term. The charges he pleaded guilty to were conspiracy to operate an unlicensed money-transmitting business and engaging in campaign finance fraud. Salame had been awaiting sentencing since September 2023.
U.S. Attorney Damian Williams stated that Salame had agreed to further the interests of FTX, Alameda Research, and his co-conspirators through an illegal political influence campaign and by operating an unlicensed money transmitting business. This allowed FTX to grow rapidly and evade legal boundaries. Williams emphasized that Salame’s involvement in these federal crimes eroded public trust in American elections and the integrity of the financial system. The sentence handed down serves as a clear reminder of the significant consequences for such offenses.
In November 2022, Salame reported FTX’s fraudulent activities to the Securities Commission of the Bahamas, just two days before CEO Sam Bankman-Fried stepped down and the firm filed for bankruptcy. Bankman-Fried was later extradited to the U.S. and convicted of seven felony counts. In March, Judge Kaplan sentenced him to 25 years in prison.
Prosecutors recommended a prison term of up to seven years for Salame due to his misuse of FTX user funds and involvement in fraud related to contributions to his girlfriend Michelle Bond’s congressional campaign. However, his defense argued that an 18-month sentence was more appropriate, given that he played a lesser role in the conspiracies he pleaded guilty to and was unlikely to repeat such offenses.
Salame is the second individual connected to FTX and Alameda Research to be sentenced, following Bankman-Fried. Former Alameda CEO Caroline Ellison, former FTX engineering director Nishad Singh, and FTX co-founder Gary Wang have all pleaded guilty to charges and testified in Bankman-Fried’s trial. The timing of their sentencing hearings remains uncertain.
As part of his agreement with prosecutors, Salame will have to pay approximately $6 million in penalties to the U.S. government and $6 million to FTX debtors. He will also surrender two properties and a business. Although he had been relatively free to travel since his guilty plea and release on a $1 million bond, Salame’s lawyers stated during forfeiture proceedings that he would have “no remaining assets” after having a net worth in the millions in 2022. However, it was revealed in a court filing on May 27 that Salame may still retain ownership of a 2021 Porsche, as it does not have sufficient equity for further forfeiture pursuit.
According to Inner City Press and X Hall of Flame, it is expected that Salame will serve less jail time compared to Bankman-Fried, and he is described as being “less flashy.”