Former FTX Exec Ryan Salame Requests 18 Months Prison Sentence

Lawyers for Rayan Salama, the former CEO of bankrupt cryptocurrency exchange FTX, who pleaded guilty for his role in the company's collapse, have asked the court to sentence their client to 18 months in prison at his next hearing scheduled for May 28.

according to Judgment memorandum According to what Inner City Press has seen, Salama's lawyers are asking the court for leniency in the form of the recommended prison sentence in addition to the restitution and forfeiture obligations to which their client agreed.

Salama demands 18 months in prison

While Salama worked at FTX and sister trading company Alameda Research, he handled client fiat transfers and bank deposits, managed political contributions, and led charitable initiatives using Alameda funds in the Bahamas.

One year after the FTX empire collapsed in November 2022, Salama pleaded guilty to criminal charges related to the events, including conspiracy to defraud the Federal Election Commission and running an unlicensed money transmitter business. He also agreed to cooperate with US authorities along with his former colleagues Nishad Singh, Caroline Ellison and Gary Wang.

As part of the agreement, Salameh paid a $6 million fine to the US government and $5 million to FTX's debtors, and forfeited two homes in Massachusetts and his 2021 Porsche. The charges to which the former FTX executive admitted could see him imprisoned for up to ten years. But his lawyers are demanding a prison sentence of less than two years.

Salama's lawyers argued in the memorandum of understanding that their client's role at FTX was more practical and less related to fraud. They said he did not know that the four core leaders at FTX and Alameda had conspired to lie and steal clients' money. The lawyers insisted that Salama did not lie or steal from anyone.

Lawyers say Salama was deceived

Furthermore, Salama's legal counsel noted his cooperation with the US government in the proposed reduced sentence, explaining that he was the first to alert authorities in the Bahamas when he learned of the FTX scam. They said their client was remorseful and made efforts to deal with his substance abuse issues.

In addition, the lawyers stated that Salama was deceived and suffered financial losses as a result of the collapse of FTX.

With FTX founder Sam Bankman-Fried sentenced to 25 years in prison, it remains to be seen what prison term the court will impose on Salama.