- Former FTX executive Ryan Salame has received a lengthy sentence for his role in the FTX fraud.
- Salame denies responsibility for the wrongdoings.
- FTX founder Sam Bankman Fried was also recently sentenced to prison.
The collapse of the now-defunct exchange FTX marked one of the largest financial implosions for the crypto industry, and the perpetrators involved are still paying for it. Following the conclusion of a trial involving the exchange’s founder and former CEO, Sam Bankman-Fried (SBF), for financial fraud, authorities have successfully nabbed another executive, former co-CEO Ryan Salame.
However, even as the bell of justice tolls, Salame is still attempting to distance himself from responsibility.
Another FTX Man Down, Plays Defense
Following his sentence on Tuesday, May 28, 2024, Salame took to social media platform X to defend himself. Radio silent since November 2022, the former executive resurfaced to deny knowledge of FTX’s financial wrongdoing.
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“The 55m loan everyone keeps citing, I had no idea about it until after ftx collapsed. Not a dollar ever touched my account and the receiver had no clue I didn't know about it. Fun thing to learn while my whole world was imploding,” stated Salame.
Salame further emphasized his regret for mismanaging customer funds at Alameda Research, wishing he had ignored the advice of his inner circle and potentially avoiding his current fate.
Interestingly, the 30-year-old noted his willingness to grant an interview, engaging his 17.2K followers in a poll to determine his host. However, the broader response was the awe of Salame’s relentless discourse, particularly following his sentence for his role in the $8 billion FTX fraud.
Ryan Salame’s Sentence and Charges
After a months-long trial presided over by U.S. District Judge Lewis Kaplan in Manhattan, Salame received a sentence totaling 90 months behind bars, approximately 7.5 years.
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This follows his September 2023 guilty plea to the DoJ’s charges of finance violation and fraud. According to the Justice Department, Salame, a high-ranking official at FTX’s sister company Alameda Research, conspired with SBF and other executives to operate an unlicensed money-transmitting business, unlawfully using the organizations to transmit customer funds.
He was also accused of misappropriating customer funds and unlawfully donating to political candidates, eroding public trust in American elections and the financial system’s integrity.
“Ryan Salame agreed to advance the interests of FTX, Alameda Research, and his co-conspirators through an unlawful political influence campaign and through an unlicensed money transmitting business, which helped FTX grow faster and larger by operating outside of the law,” US attorney Damian Williams stated.
As part of his sentence, Salame has been ordered to pay $5 million to FTX debtors and forfeit $6 million worth of luxurious properties, including two houses in Lenox, Massachusetts, and a 2021 Porsche automobile. He was also sentenced to three years of supervised release.
On the Flipside
- Aside from Salame, three other ex-FTX executives, Caroline Ellison, Gary Wang, and Nishad Singh, pleaded guilty to involvement in the FTX fraud.
- Founder and former CEO of FTX, SBF, was sentenced to 25 years in prison in March 2024.
Why This Matters
Actions have repercussions, and Ryan Salame’s sentence highlights the severity of punishment for those implicated in large-scale financial misconduct.
Read here to find out more about the extent of the FTX Fraud:
FTX Employees Uncovered a $65B Backdoor Months Before Collapse
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