Ryan Salame, the former co-CEO of FTX Digital Markets, has been sentenced to 7.5 years in prison after pleading guilty to two felony charges.
The sentencing was delivered by Judge Lewis Kaplan in the U.S. District Court for the Southern District of New York on May 28.
Salame admitted to conspiracy to operate an unlicensed money-transmitting business and engaging in campaign finance fraud.
His guilty plea, entered in September 2023, acknowledged his role in advancing FTX and Alameda Research’s operations through illegal political contributions and unauthorized financial activities.
U.S. Attorney Damian Williams emphasized the gravity of Salame’s actions, stating, “Ryan Salame’s unlawful political influence campaign and unauthorized money transmitting business helped FTX grow rapidly by operating outside the law.
His involvement undermined public trust in American elections and the financial system.”
Salame was a key figure in exposing FTX’s fraudulent activities.
On November 9, 2022, he reported the misconduct to the Securities Commission of the Bahamas, just before Sam Bankman-Fried resigned as CEO and FTX filed for bankruptcy.
Bankman-Fried was later extradited to the U.S. and sentenced to 25 years in prison for his crimes.
Prosecutors had recommended a prison term of up to seven years for Salame due to his misuse of FTX user funds and fraudulent campaign contributions to his girlfriend, Michelle Bond.
However, Salame’s defence argued for a lighter sentence of 18 months, suggesting he played a minor role in the conspiracies and was unlikely to re-offend.
Salame is the second major figure from FTX and Alameda Research to be sentenced, following Bankman-Fried.
Other key individuals, including former Alameda CEO Caroline Ellison, ex-FTX engineering director Nishad Singh, and FTX co-founder Gary Wang, have pleaded guilty and testified against Bankman-Fried.
Their sentencing dates remain unconfirmed.
Since his guilty plea, Salame has been out on a $1 million bond and has mostly remained free to travel.
As part of his plea agreement, he must pay around $6 million in penalties to the U.S. government and another $6 million to FTX creditors.
Additionally, he is required to forfeit two properties and a business. Despite these forfeitures, a recent court filing indicated Salame might retain his 2021 Porsche due to insufficient equity for forfeiture.
