Ryan Salame, the former co-CEO of FTX’s Bahamian subsidiary, was sentenced to 90 months in jail, as stated by U.S. federal prosecutors on Tuesday.
Judge Lewis Kaplan of the U.S. District Court for the Southern District of New York sentenced Salame. The U.S. Justice Department states that in addition to his sentence of three years of supervised release, he was also ordered to pay $6 million in forfeiture and more than $5 million in restitution.
U.S. Attorney for the Southern District of New York Damian Williams stated, “Salame’s involvement in two serious federal crimes undermined public trust in American elections and the financial system’s integrity. Today’s sentence underscores the substantial consequences for such offenses.”
Earlier this year, Bankman-Fried received a 25-year prison sentence for embezzling $8 billion from FTX clients. On seven counts of fraud and conspiracy relating to the collapse of FTX in 2022—which the prosecution has referred to as one of the largest financial frauds in American history—a jury found him guilty in November.
Salame should spend five to seven years in prison, according to the prosecution. Salame allegedly committed grave offenses to “burnish Bankman-Fried’s reputation and foster the growth of FTX.”
The prosecution claims that Salame, Bankman-Fried, and former FTX engineering chief Nishad Singh contributed to political politicians who supported legislation favorable to cryptocurrencies using FTX consumer monies.
In September, Salame entered a guilty plea to conspiring to conduct an unregistered money-transmitting company and to make illegal political contributions. He collaborated with former FTX CEO Sam Bankman-Fried while serving as co-CEO of FTX Digital Markets.
Salame had intended to receive a maximum 18-month prison sentence. Salame’s lawyers claimed that he lost a significant portion of his personal wealth when FTX failed in November and that he was not a major participant in any fraudulent conduct.
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