FTX Collapse: Former Exec Faces 7.5 Years Behind Bars

Former FTX Exec Gets 7.5 Years in Prison for Fraud and Campaign Finance Violations

A former high-ranking official at cryptocurrency exchange FTX is behind bars after a judge sentenced him to prison time.

Ryan Salame, who served as co-CEO of FTX Digital Markets, was sentenced to 7.5 years in prison by a federal judge in New York. This comes after Salame pleaded guilty to two serious charges: operating an unlicensed money transmitting business and campaign finance fraud.

According to prosecutors, Salame used FTX funds for unauthorized money transfers and participated in an illegal campaign finance scheme. These actions helped FTX grow quickly, but they also broke the law.

FTX Collapse and Legal Fallout

Salame reported FTX’s wrongdoings to Bahamian authorities shortly before the company filed for bankruptcy in November 2022. Former FTX CEO Sam Bankman-Fried was also charged with fraud and sentenced to 25 years in prison earlier this year.

Prosecutors sought a seven-year sentence for Salame, considering his cooperation in the case against Bankman-Fried. Salame’s defense argued for a lighter sentence, claiming he played a lesser role in the crimes.

More Sentencings to Come

Salame is the second FTX-connected individual to be sentenced. Several other former FTX executives have pleaded guilty to charges and are awaiting their sentencing dates.

Salame was released on bond after his guilty plea and remained free until sentencing. As part of his plea deal, he will pay millions of dollars in penalties and forfeit some assets.