Ryan Salama, who was a high-ranking executive at cryptocurrency exchange FTX, was sentenced to more than seven years in prison on charges of fraud and conspiracy to operate an unlicensed money transfer business, the Financial Times reported.
Rayan Salama, 30, pleaded guilty to charges of election fraud and conspiracy to operate an unlicensed money transfer company. His crimes were linked to Sam Bankman-Fried's FTX cryptocurrency empire, which collapsed in late 2022. Salama is among four former senior FTX managers who have pleaded guilty, joining Caroline Ellison, Nishad Singh and Gary Wang. However, unlike his colleagues, Salama did not testify against Bankman-Fried.
In March, Bankman-Fried was sentenced to 25 years in prison for embezzling billions of dollars from FTX clients and investors. Salama's less significant sentence reflects his role in facilitating illegal political donations and other financial irregularities.
Salama joined Alameda Research, a subsidiary of FTX, in 2019 and later became co-CEO of FTX's Bahamas subsidiary. He has played a key role in FTX's political contributions, serving as an “unofficial donor” to direct more than $100 million to US political campaigns ahead of the 2022 midterm elections. These donations are intended to garner favor from both major political parties.
Salama admitted that this money came from an Alameda subsidiary and was classified as loans that he never intended to repay. His activities included meeting with prominent politicians, including Republican Senator Mitch McConnell and former Congressman Kevin McCarthy.
Prosecution and defense arguments
The prosecution demanded a seven-year prison sentence, stressing the seriousness of the crime of financing political campaigns, which included more than 300 donations. They described it as “one of the largest corporations ever in American history.” Ultimately, Salama received a 90-month prison sentence.
Salama's lawyers had asked for a lenient sentence, no more than 18 months, arguing that Salama was as shocked as anyone else by FTX's fraudulent activities. They claimed that he was not part of Bankman Fried's inner circle and did not anticipate the collapse of the cryptocurrency giant.
Damien Williams, the US Attorney in Manhattan, stressed the broader impact of Salameh's actions. He stated that Salama's crimes greatly aided FTX's rapid growth by circumventing legal limits, thus eroding public confidence in US elections and the financial system.
Last year, US authorities reportedly tracked a private plane Salama had purchased while at FTX. The sources indicated that the plane was scheduled to be included in the plea deal, and either be delivered or sold to help recover customer money. Besides, Salama is said to have bought five restaurants in Massachusetts worth $6 million after joining the company.
Ryan Salama, who was a high-ranking executive at cryptocurrency exchange FTX, was sentenced to more than seven years in prison on charges of fraud and conspiracy to operate an unlicensed money transfer business, the Financial Times reported.
Rayan Salama, 30, pleaded guilty to charges of election fraud and conspiracy to operate an unlicensed money transfer company. His crimes were linked to Sam Bankman-Fried's FTX cryptocurrency empire, which collapsed in late 2022. Salama is among four former senior FTX managers who have pleaded guilty, joining Caroline Ellison, Nishad Singh and Gary Wang. However, unlike his colleagues, Salama did not testify against Bankman-Fried.
In March, Bankman-Fried was sentenced to 25 years in prison for embezzling billions of dollars from FTX clients and investors. Salama's less significant sentence reflects his role in facilitating illegal political donations and other financial irregularities.
Salama joined Alameda Research, a subsidiary of FTX, in 2019 and later became co-CEO of FTX's Bahamas subsidiary. He has played a key role in FTX's political contributions, serving as an “unofficial donor” to direct more than $100 million to US political campaigns ahead of the 2022 midterm elections. These donations are intended to garner favor from both major political parties.
Salama admitted that this money came from an Alameda subsidiary and was classified as loans that he never intended to repay. His activities included meeting with prominent politicians, including Republican Senator Mitch McConnell and former Congressman Kevin McCarthy.
Prosecution and defense arguments
The prosecution demanded a seven-year prison sentence, stressing the seriousness of the crime of financing political campaigns, which included more than 300 donations. They described it as “one of the largest corporations ever in American history.” Ultimately, Salama received a 90-month prison sentence.
Salama's lawyers had asked for a lenient sentence, no more than 18 months, arguing that Salama was as shocked as anyone else by FTX's fraudulent activities. They claimed that he was not part of Bankman Fried's inner circle and did not anticipate the collapse of the cryptocurrency giant.
Damien Williams, the US Attorney in Manhattan, stressed the broader impact of Salameh's actions. He stated that Salama's crimes greatly aided FTX's rapid growth by circumventing legal limits, thus eroding public confidence in US elections and the financial system.
Last year, US authorities reportedly tracked a private plane Salama had purchased while at FTX. The sources indicated that the plane was scheduled to be included in the plea deal, and either be delivered or sold to help recover customer money. Besides, Salama is said to have bought five restaurants in Massachusetts worth $6 million after joining the company.
