US Prosecutors Seek 5-7 Years for Former FTX Executive Ryan Salame

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Hongji Feng

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Hongji Feng

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Hongji is a crypto and tech reporter. He graduated from Northwestern University's Medill School of Journalism with a Bachelor's and a Master's. He has previously interned at HTX (Huobi Global),...

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May 21, 2024

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The U.S. prosecutors are pushing for a prison sentence of five to seven years for the former FTX executive Ryan Salame.

According to a sentencing memorandum, the attorneys of the Southern District of New York have argued for an extended imprisonment term, citing the seriousness and the general deterrence in imposing sentence.

Former FTX Executive’s Crimes of Seriousness

The document stated that Salame was first the head of the Settlements Team at Alameda and then CEO of FTX Digital Markets from 2019 to 2022, during which he assisted Samuel Bankman-Fried in “perpetrating aspects of the interrelated frauds.”

The attorneys elaborated that Salame was found guilty for “unlicensed money transmission and false statements to banks” and “unlawful political contributions through Alameda.”

“For instance, he was relied upon to integrate FTX into the Bahamas (Def. Mem. at 9), and he spoke to Caroline Ellison about ways to retrieve funds from cryptocurrency exchanges in China that had frozen Alameda accounts (Tr. 830),” the memo reads.

The memo also included the recommended sentence of 120 months’ imprisonment by the Probation Office, considering serious offense conduct, the large amounts of money involved, and the need for general deterrence.

“In light of the defendant’s serious crimes, which were designed to undermine the integrity of the U.S. campaign finance system and the U.S. financial system, a substantial term of incarceration, well above the 18 months’ he requests, is required,” the memo reads.

Salame Requests 18 Months or Less

The lawyers of the defendant submitted the sentencing memo on May 14, urging a prison time no longer than 18 months.

“Such a sentence would satisfy the purposes of sentencing … while allowing Ryan to have the opportunity to continue contributing positively toward society,” the defendant’s sentencing memo reads.

Salame’s attorneys argued that he did not play a central role in the fraudulent activities and lost a significant portion of his personal fortune with the collapse of FTX. The sentencing is scheduled for May 28.