Former FTX Exec Ryan Salame Deserves 5 to 7 Years in Prison: US Prosecutors

The United States prosecutors have requested a prison sentence of five to seven years for former FTX executive Ryan Salame for his involvement in the crimes that led to the collapse of the FTX crypto exchange. 

Salame’s lawyers had earlier requested a lenient sentence of no more than 18 months in prison, arguing that he did not play a central role in fraudulent activity and lost much of his fortune with the collapse of FTX. His legal team also highlighted his cooperation with authorities and Salame agreed to forfeit nearly $6 million worth of assets, including a restaurant in Massachusetts as part of his plea deal.

Authorities Request for Longer Prison Sentence

Despite his recent plea, U.S prosecutors emphasized in a sentencing memo filed in federal court in Manhattan that Salame has committed serious crimes known as one of the largest ever in American history. The authorities demanded that a strict sentencing be required to properly reflect the gravity of his crimes. 

“The defendant’s assertion that his crimes were intended only to help FTX and the cryptocurrency industry more generally are not mitigating and also belied by the evidence, which indicates that the defendant personally benefited in numerous ways from his criminal actions. Only a substantial incarceration sentence could appropriately reflect the nature and seriousness of his conduct and afford adequate deterrence,” the prosecutors said. 

Furthermore, the prosecutors alleged that it was Salame who helped FTX accept customer deposits through a U.S. bank account without the necessary licenses. 

Salame who pled guilty last September to crimes linked to misappropriating FXT investors’ funds is set to be sentenced on May 28. Other key figures in the scandal, such as Caroline Ellison, Nishad Singh, and Gary Wang, are still awaiting their sentences.

The FTX Collapse

FTX, once regarded as one of the leading crypto exchanges 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 the exchange, was recently sentenced to 25 years in prison for misusing customers’ funds. Earlier this month, the bankrupt crypto firm announced plans to pay all its creditors more than they had on the platform before it went bankrupt.