Former FTX executive Ryan Salame faces a potential five to seven years in prison as prosecutors emphasize the gravity of his criminal activities.

Federal prosecutors have recommended a significant prison sentence for Ryan Salame, a former executive at the now-defunct FTX crypto exchange. In a sentencing memo filed in federal court in Manhattan, U.S. prosecutors stressed that Salame has committed serious crimes and requires a substantial sentence to ensure justice.

“The campaign finance offense is one of the largest-ever in American history, and the unlicensed money transmitting business exchanged more than $1 billion without proper supervision.”

Salame pleaded guilty to violating campaign finance laws and operating an unlicensed money transmitting business. His sentencing is scheduled for May 28. Other key figures involved in the scandal, including Caroline Ellison, Nishad Singh, and Gary Wang, are also awaiting their sentences.

Salame’s legal team is contesting the sentencing recommendation, highlighting his cooperation with authorities. They argue that he has contributed positively to society despite his involvement in the crimes.

“He has been a good man who has done much good in this world, who conspired to commit two crimes while in the thrall of a criminal leader.”

As part of his plea deal, Salame agreed to forfeit nearly $6 million worth of assets, including a restaurant in Massachusetts.

In 2019, Ryan Salame joined Alameda Research, FTX’s hedge fund, after meeting Sam Bankman-Fried at a blockchain conference. He later became the CEO of FTX’s Bahamas subsidiary. Prosecutors allege that Salame facilitated FTX’s acceptance of customer deposits through a U.S. bank account without the necessary licenses. Additionally, Salame is accused of acting as a straw donor, funneling millions in political donations.

FTX collapsed in November 2022 amid allegations of embezzlement and misappropriation of billions of dollars in customer funds involving its owners and affiliated hedge fund, Alameda Research. Sam Bankman-Fried, the founder of FTX, was sentenced to 25 years in prison and ordered to reimburse $11 billion.

In early May, reports indicated that FTX had amassed more than enough funds to cover its collapse-related losses. FTX CEO John Ray called this an “unbelievable result,” signaling the exchange’s readiness to fully reimburse its over 2 million customers.

For more updates on this and other cryptocurrency news, stay tuned to Global Crypto News.

Post Views: 6