US Prosecutors Push for 5-7 Year Prison Sentence for Ex-FTX Exec

Federal prosecutors are demanding a five- to seven-year prison sentence for former FTX CEO Ryan Salama, who was implicated in its multibillion-dollar collapse.

His defense team asserts that his sentence should reflect his role in exposing the fraud, and is demanding a reduced sentence of no more than 18 months.

Safety defense

According to the sentencing memorandum filed in federal court in Manhattan on Tuesday, which was seen by Bloomberg, prosecutors Confirm Serious safety violations. “Campaign finance crime is one of the largest crimes ever in American history, and unlicensed money carriers exchanged more than $1 billion without proper oversight,” the memo said.

In his defense, Salama's lawyers highlighted his cooperation with the authorities and his efforts to uncover possible fraud. They argue that Salama was the first person inside FTX to alert Bahamian regulators of the coming crisis in late 2022.

Since his guilty plea in September, Salama has embarked on a new path, raising his first child with his long-term partner Michelle Bond and seeking drug treatment.

“He was a good man who did a lot of good in this world, and he conspired to commit two crimes while under the control of a criminal kingpin who deceived leaders of industry and politics more cunning than Ryan,” Salama’s lawyers wrote in the lawsuit. .

Salama faces sentencing on May 28

Salameh's plea deal includes the forfeiture of assets worth $6 million, including a restaurant in Massachusetts near his hometown. His sentencing memorandum also includes 28 letters from friends and family, including former Alameda Research co-CEO Sam Trabucco.

Salama is scheduled to be sentenced on May 28. He will be the first member of FTX co-founder Sam Bankman-Fried's inner circle to face justice for his role in the collapse of the cryptocurrency exchange while others await sentencing. Bankman-Fried himself received a 25-year prison sentence in March, a result he is currently appealing.

Salama's legal journey began in 2019 when he joined Alameda Research, FTX's sister hedge fund, after meeting Bankman-Fried at a blockchain conference. By 2021, Salama had moved to the Bahamas and assumed the position of CEO at FTX, its subsidiary in the Bahamas.

During his tenure, Salama facilitated the acceptance of customer deposits through a US bank account despite lacking the necessary licenses. He also served as an unofficial donor to Bankman-Fried, funneling millions in political donations to candidates seen as crypto-friendly ahead of the 2022 election.