US Prosecutors Seek Up to Seven Years for Former FTX Executive

US prosecutors have recommended a prison sentence of five to seven years for Ryan Salame, the former CEO of FTX’s Bahamian division.

In September 2023, Salame pleaded guilty to criminal charges related to the collapse of the cryptocurrency exchange. The charges involve conspiracy to make illegal donations and operating an unlicensed money-transmitting business.

Sentencing is scheduled for May 28. Previously, Salame’s lawyers requested a sentence of 1.5 years in prison for their client.

However, the prosecution argues that the sentence should be significantly harsher.

“The defendant’s claim that his crimes were solely aimed at helping FTX and the crypto industry as a whole does not mitigate his actions and is contradicted by evidence showing that the accused personally benefited in many ways from his criminal conduct,” the prosecution noted.

According to law enforcement, the sentence they have requested for Salame “adequately reflects the nature and seriousness of his offenses.”

The former executive’s defense claims he did not play a central role in FTX’s fraudulent scheme and lost most of his personal wealth as a result of the platform’s collapse.

In November 2022, two days before FTX filed for bankruptcy, Salame warned Bahamian authorities of a potential scam.

Co-founder and former CEO of the exchange, Sam Bankman-Fried (SBF), was found guilty on all charges by a jury in November 2023. In March 2024, he was sentenced to 25 years in prison. SBF’s lawyers have already appealed the court’s decision.

Regarding Salame, prosecutors stated that he committed serious crimes by “aiding the growth of FTX and enhancing Bankman-Fried’s image.”

“His violations of campaign finance laws were among the largest in US history, and the unlicensed money-transmitting business exchanged over $1 billion without proper oversight,” added the prosecution.

Earlier, former Alameda Research head Caroline Ellison, FTX CTO Gary Wang, and the exchange’s head of engineering Nishad Singh also agreed to plead guilty.