Ryan Salame, former co-chief executive officer of FTX Digital Markets Ltd., has been sentenced to 90 months in prison, followed by three years of supervised release. The sentence, handed down by Judge Lewis Kaplan, also includes more than $6 million in forfeiture and over $5 million in restitution.
Salame pleaded guilty in September to conspiracy to make unlawful political contributions, defraud the Federal Election Commission, and conspiracy to operate an unlicensed money-transmitting business. This guilty plea came after Salame transitioned from a high-ranking position at Alameda Research to co-CEO of FTX's Bahamian subsidiary, FTX Digital Markets.
Salame's guilty plea and subsequent cooperation with authorities shed light on potential fraud committed by FTX founder Sam Bankman-Fried. In fact, Salame alerted Bahamian authorities to potential mishandling of client assets by Bankman-Fried, which ultimately led to Bankman-Fried's conviction for stealing customer cash.
Several other insiders also came forward with damaging testimony against Bankman-Fried, including Alameda's former CEO, SBF's ex-girlfriend, and FTX's ex-engineering head. Their testimony contributed to Bankman-Fried's guilty verdict in November.
U.S. Attorney Damian Williams emphasized the seriousness of Salame's crimes, stating that they undermined public trust in American elections and the financial system. Salame is the first of Bankman-Fried's executive team to be sentenced since FTX filed for bankruptcy in 2022.
Overall, the sentencing of Ryan Salame underscores the significant consequences of white-collar crimes and the importance of upholding integrity in both the political and financial sectors. The cooperation of insiders like Salame in exposing fraudulent activities highlights the role that whistleblowers can play in holding individuals accountable for their actions.