US Prosecutors Ask for 5-7 Years for Former FTX Exec Ryan Salame

After SBF got his guilty verdict, Ryan Salame is due to face sentencing on May 28. Federal prosecutors call for a more than half-decade prison sentence, adding, “serious crimes, and a substantial sentence is required to ensure that Salame receives just punishment.”

Also Read: Report: Sam Bankman-Fried (SBF) to Be Transferred to a New Prison

The United States Department of Justice is redefining crypto justice for affected investors. This March, they sentenced SBF to 25 years in prison. Now, it’s time for Ryan Salame to get his sentence. His legal team argues ‘cooperation-consideration, ‘ while Fed prosecutors argue ‘serious crimes.’

Ryan Salame Looks to a Half a Decade in Prison

Ryan Salame is up next for the justice call. In the government’s 30-page sentencing memorandum filed Tuesday evening, prosecutors state that Salame’s “serious crimes” require “a substantial sentence.” 

Salame is due to be sentenced on May 28. He is the first top lieutenant of FTX co-founder Sam Bankman-Fried to be punished for his role in the company’s collapse. Prosecutors say Salame should serve five to seven years in prison.

According to reports, these executives siphoned $10 billion from customers, investors, and lenders. Bankman-Fried was sentenced in March to 25 years in prison, an outcome he is planning to appeal.

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.

Federal prosecutors

In September, Ryan pleaded guilty to 2 counts of campaign finance violations and operating an unlicensed money-transmitting business. 

The government says that by acting as a “straw donor,” Salame helped “pump more than $100 dollar million in illegal contributions through the US political system to help support Bankman-Fried and FTX’s legislative priorities.” 

Prosecutors Acknowledge Salame’s Cooperation 

Salame might not have a smooth sailing process like Changpeng Zhao’s. Prosecutors note that Ryan Salame’s cooperation with the government in FTX founder SBF’s criminal trial was “relatively minor.” He also never entered into a formal cooperation agreement. 

The defendant did not himself meet with the Government […] Rather, Salame provided documents, such as text messages and emails, in response to Government document requests, and authorized his attorneys to make multiple factual proffers to the Government.

Federal prosecutors

However, Ryan did, in fact, hand over some last-minute information to government attorneys in the days before SBF’s trial. The evidence was helpful during the cross-examination of some witnesses. 

The government argued to the court that “none of the information resulted in any significant investigative leads, arrests, or charges.” 

Last week, the defense asked the court to sentence Salame to 18 months in prison. They claim that the former executive had been “duped” by Sam Bankman-Fried and was “the first person to blow the whistle to authorities in the Bahamas” when he uncovered the nature of the fraud. 

Salame’s Journey at FTX and After

The former accountant moved to the Bahamas in 2021 and became chief executive officer of FTX’s subsidiary there. According to prosecutors, Salame allowed FTX to accept customer deposits through a US bank account without having a proper license to operate. 

Moreover, Ryan acted as a straw donor for SBF, making millions in political donations to candidates and campaigns he perceived as crypto-friendly in the lead-up to the 2022 election.

Sam Trabucco breaks silence 👀

He submitted a character reference letter for Ryan Salame who has a sentencing hearing scheduled for May 28 pic.twitter.com/1uPZvKe3UQ

— Frank Chaparro (@fintechfrank) May 16, 2024

His attorneys added that Salame has been working to pursue a law degree. Ryan has already taken the Law School Admission Test (LSAT) in the hopes that he can eventually “help less fortunate individuals.” 

He has been a good man who has done much good in this world, who conspired to commit two crimes while in the thrall of a criminal leader who had beguiled captains of industry and politics far savvier than Ryan.

Ryan’s attorneys

Since pleading guilty in September, Ryan Salame has started a new chapter in his life. He is raising his first child with longtime partner Michelle Bond while treatment for substance abuse.

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Cryptopolitan Reporting by Florence Muchai

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