May 29, 2024 12:25
Ryan Salame, once a high-ranking executive at thecryptocurrency exchange FTX, has been sentenced to more than seven years in prison forfraud charges and conspiracy to operate unlicensed money-transmitting business,the Financial Times reported.
Salame's Guilty Plea and Sentencing
Ryan Salame, aged 30, pled guilty to election fraudcharges and conspiracy to operate an unlicensed money-transmitting business.His crimes were linked to Sam Bankman-Frieds crypto empire FTX, which crumbled inlate 2022. Salame is among four former top FTX managers who admitted guilt,joining Caroline Ellison, Nishad Singh, and Gary Wang. However, unlike hiscolleagues, Salame did not testify against Bankman-Fried.
In March, Bankman-Fried was sentenced to a 25-yearsentence for embezzling billions from FTX customers and investors. Salame'slesser but still significant sentence reflects his role in facilitatingunlawful political donations and other financial irregularities.
Salame joined Alameda Research, an affiliate of FTX, in 2019 and later became co-chief executive of FTXs Bahamian branch. He played a key role in FTXs political contributions, acting as a "straw donor" to channel over $100 million into US political campaigns ahead of the 2022 midterm elections. These donations aimed to obtain favor withboth major political parties.
Salame admitted that these funds came from an Alamedasubsidiary and were categorized as loans he never intended to repay. Hisactivities involved meeting with high-profile politicians, including RepublicanSenator Mitch McConnell and former Congressman Kevin McCarthy.
Prosecutors and Defense Arguments
Prosecutors argued for a seven-year sentence,emphasizing the gravity of the campaign finance offense, which involved morethan 300 political donations. They described it as "one of the largest-ever inAmerican history." Salame ultimately received a 90-month prison sentence.
Salames lawyers had sought a lighter sentence, nomore than 18 months, arguing that Salame was as shocked as anyone by FTXsfraudulent activities. They contended he was not part of Bankman-Friedsclosest circle and did not anticipate the collapse of the crypto giant.
Damian Williams, the US Attorney in Manhattan,underscored the broader impact of Salames actions. He stated that Salamescrimes significantly aided FTXs rapid growth by circumventing legalboundaries, thereby eroding public trust in American elections and thefinancial system.
Last year, US authorities reportedly traced a private jetthat Salame purchased while at FTX. Sources indicated that the jet was to beincluded in the plea deal, either being surrendered or sold to help recovercustomers' funds. Besides that, Salame is said to have bought five restaurantsin Massachusetts, valued at USD $6 million, after he joined the company.
This article was written by Jared Kirui at www.financemagnates.com.
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