Ryan Salame, the head of FTX’s subsidiary in the Bahamas, is the first executive to receive a prison sentence since FTX collapsed in November 2022. Salame, 30, pleaded guilty last year to violating campaign finance law and operating an unlicensed money transmitter. Salame, one of four senior executives in the FTX empire, is the first to plead guilty and be sentenced.
FTX’s Ryan Salame becomes the first of Sam Bankman-Fried’s deputies to go to jail
The court sentenced Salame to seven and a half years in prison, going beyond the five to seven years recommended by prosecutors. Defense lawyers had asked for an 18-month sentence. Before the collapse of FTX, Salame ran the subsidiary in the Bahamas.
As FTX grew into a $32 billion business, he drew attention for his luxury spending, buying expensive cars, private jets and restaurants in Massachusetts. He also donated more than $24 million to mostly Republican candidates in the 2022 US midterm elections.
Following the collapse of FTX in November 2022, federal prosecutors searched Salame’s home in Maryland. FTX founder Sam Bankman-Fried was accused of stealing $8 billion from his clients and using it for political donations, investment projects and luxury real estate purchases. Three senior FTX executives (Gary Wang, Nishad Singh and Caroline Ellison) pleaded guilty to financial crimes and cooperated with the government. They are also set to be sentenced.
Salame also pleaded guilty in September, admitting that he acted as an illegal “fake donor” at Bankman-Fried’s direction. Prosecutors called it one of the largest campaign finance violations in American history. With his guilty plea, Salame agreed to pay $6 million in fines and more than $5 million in restitution, and forfeited two properties in Massachusetts and his Porsche.
Prosecutors argued that Salame was motivated by greed for money and influence. Even as FTX was collapsing, he withdrew $5 million to pay personal expenses and hire a public relations firm. Hours before the bankruptcy, he reportedly withdrew another $600,000 from his account on FTX’s US platform.
Bankman-Fried was tried last year on fraud and conspiracy charges and sentenced to 25 years in prison. Salame’s lawyers said he did not know Bankman-Fried had stolen billions of dollars from customers. They said the news was also shocking and upsetting for Salame.
Salame’s lawyers stated that their client’s life was ruined in almost every way and that the collapse of FTX brought shame and instability to his family. Salame is in a long-term relationship with former cryptocurrency lobbyist Michelle Bond, and the couple had their first child in November. It was also reported that Salame has begun to seriously deal with his substance abuse problem and plans to attend law school.
Salame, like Wang, Singh and Ellison, did not testify in court against Bankman-Fried. However, his lawyers noted that Salame voluntarily turned over documents and helped the government prepare for the case.
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