Former FTX Executive Faces Potential 5–7 Years in Prison, Prosecutors Argue

United States prosecutors are advocating for a substantial prison sentence of five to seven years for Ryan Salame, a former FTX executive accused of being a key figure in the collapse of the FTX crypto exchange. Alleged to have worked closely with FTX co-founder Sam “SBF” Bankman-Fried, Salame has pleaded guilty to charges related to misappropriating FTX investors’ funds.

In a sentencing memo filed on May 21 in Manhattan federal court, prosecutors emphasized the severity of Salame's crimes and urged for a punishment commensurate with the scale of his actions. This stance stands in contrast to arguments put forth by Salame’s defense team, who contend that he should face no more than 18 months behind bars.

The prosecutors highlighted the gravity of the offenses, stating, “The campaign finance offense is one of the largest-ever in American history, and the unlicensed money transmitting business exchanged more than $1 billion without proper supervision.” Salame's sentencing hearing, pertaining to his involvement in the alleged misappropriation of $10 billion of users' funds alongside SBF, is scheduled for May 28. Prosecutors underscored the necessity of a significant prison term, asserting that it is crucial for deterring both the defendant and others from similar misconduct and fostering respect for the law.

SBF, Salame's purported accomplice, was previously sentenced by the District Court for the Southern District of New York to 25 years in prison on April 1, following his conviction on seven felony charges. Salame's forthcoming sentencing will mark the first among SBF's associates to be sentenced.

Salame's professional trajectory saw him rise from his initial role at Alameda Research in Hong Kong in 2019 to eventually assume the position of CEO at FTX Digital Markets, the FTX subsidiary headquartered in the Bahamas.

While Salame's fate hangs in the balance, other prominent figures allegedly involved in the FTX scandal, including Caroline Ellison, Nishad Singh, and Gary Wang, await their own sentencing hearings.

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