Former FTX Executive Jailed for Over Seven Years for Involvement in Cryptocurrency Exchange Collapse
Ryan Salame, a former top executive at FTX, has been sentenced to over seven years in prison for his role in the collapse of the cryptocurrency exchange. Salame, 30, is the first deputy at the company to be sentenced following the conviction of its CEO, Sam Bankman-Fried, who has been dubbed the “crypto king.”
FTX experienced sudden bankruptcy in November 2022, leaving millions of users unable to access their accounts or make withdrawals. Bankman-Fried was sentenced to 25 years in March after being found guilty of stealing billions of dollars from customers.
Salame was sentenced to seven and a half years in prison, along with three years of supervised release, by federal judge Lewis Kaplan on Tuesday. This was longer than the five years requested by prosecutors. Salame had pleaded guilty last year to making illegal campaign contributions and operating an unlicensed money-transmitting business.
During the court proceedings, it was revealed that Salame helped Bankman-Fried hide discrepancies in FTX’s balance sheet, ultimately leading to its collapse. He also acted as a conduit for illegal campaign contributions in an attempt to influence US government policies on cryptocurrencies. While Bankman-Fried mainly contributed to Democrats and left-leaning causes, Salame contributed to Republicans and right-leaning causes using funds provided by Bankman-Fried.
Judge Kaplan described Salame’s actions as “astonishing” and stated that he was fully aware of his actions. He also criticized Salame for withdrawing $5 million in cryptocurrencies from FTX as it was failing, with the intention of withdrawing tens of millions more. Judge Kaplan added, “It was me first. I’m getting in the lifeboat first. To heck with all those customers.”
Salame expressed remorse and apologized to FTX customers and his family. He maintained that he had good intentions but acknowledged that his means of achieving them were illegal. Before his sentencing, Salame stated, “I am beginning my path to redemption and I accept what’s next.”
Three other high-level FTX executives, including co-founder Gary Wang and head of engineering Nishad Singh, are also awaiting sentencing for their roles in the collapse. Caroline Ellison, Bankman-Fried’s on-off girlfriend and chief executive of FTX hedge fund Alameda Research, is also awaiting sentencing. All three cooperated with prosecutors and testified against Bankman-Fried in exchange for potentially suspended prison sentences.
