FTX executive sentenced to 90 months in prison

Ryan Salame, a former FTX executive, received a seven-and-a-half-year prison sentence after pleading guilty to conspiracy charges related to illegal political contributions and operating an unlicensed money transmitting business. The ruling is from the US Attorney’s Office for the Southern District of New York (SDNY).

In addition to the prison sentence, Salame will face three years of supervised release. Additionally, she must pay more than $11 million in forfeiture and restitution.

“Ryan Salame has agreed to promote the interests of FTX, Alameda Research and their co-conspirators. This occurred through an illegal political influence campaign and an unlicensed money transmitting business. This helped FTX grow faster and bigger while operating outside the law,” stated Damian Williams, US Attorney.

According to the US Attorney, Salame’s participation in two serious federal crimes undermined public confidence in US elections and the integrity of the financial system.

FTX executive is sentenced

As a senior executive at Alameda Research and co-CEO of FTX Digital Markets, Salame conspired with others to illegally transmit client funds and make covert political donations, SDNY reported.

“In total, Salame and his co-conspirators made more than 300 political contributions totaling tens of millions of dollars, which were illegal because they came from a shell donor or paid for with corporate funds. This caused campaigns and political action committees to submit false information to the Federal Election Commission.”

Salame’s conviction highlights the extent of misconduct within FTX and its affiliates, where misuse of client funds and manipulation of the political system were common.

Salame’s sentence is significantly less compared to that of Sam Bankman-Fried, former CEO of FTX. Known as SBF, Bankman-Fried will have to serve 25 years in prison. Additionally, he will have to pay $11 billion in forfeiture for defrauding FTX investors of more than $1.7 billion.

He was found guilty of two counts of wire fraud, two counts of conspiracy to commit wire fraud, one count of conspiracy to commit securities fraud, one count of conspiracy to commit commodities fraud and one count of conspiracy to commit money laundering.