U.S. prosecutors are pushing for a 5 – 7 year sentence for former FTX executive Ryan Salame on charges stemming from his time at Sam Bankman-Fried’s (SBF) doomed crypto exchange, according to a sentencing memorandum filed late Tuesday.
Salame, who previously requested a maximum sentence of 18 months in prison, pled guilty to a campaign finance violation and operating an illegal money-transmitting business related to his role as CEO of FTX’s Bahamian subsidiary, FTX Digital Markets.
Former FTX Exec Ryan Salame Could See 5 – 7 Years In Prison
Prosecutors allege Salame orchestrated “efforts to allow customers to send and receive fiat currency to fund their FTX accounts through U.S.-based bank accounts without complying with federal registration requirements” and took part in a straw donor scheme that saw over $100 million in illegal donations shuffled through the American political system.
“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,” the court filing read. “Those are serious crimes, and a substantial sentence is required to ensure that Salame receives just punishment.”
SDNY prosecutors submitted their sentencing memo yesterday for Ryan Salame. They’re asking for 5 to 7 years in federal prison. pic.twitter.com/dM2s6f48W0
— Jacob Silverman (@SilvermanJacob) May 22, 2024
Prosecutors further claimed that although FTX is gone, Salame may commit other offenses during his career if he gets off with a too-light sentence.
“Life is long, the news cycle moves on, and the defendant could once again be faced with the opportunity to commit white-collar crimes that he may view as having a low likelihood of detection,” the memorandum continued.
String Of SBF Associates Set To Be Sentenced
Salame marks the first FTX executive to be sentenced since Bankman-Fried was handed a 25-year sentence and ordered to forfeit $11 billion in March following his landmark fraud trial last fall that saw a handful of high-ranking employees from the now disgraced crypto exchange testify against him in hopes of a lighter sentence themselves.
Several key players in the fraud scheme are facing charges for their role in the multi-billion dollar crypto scam, including former Alameda Research CEO Caroline Ellison, FTX’s Head of Engineering Nishad Singh, and FTX co-founder Gary Wang.
SBF, who has been serving out his sentence at Metropolitan Detention Sentence in New York, will likely be heading back west following news this week that U.S. authorities are preparing paperwork for his transfer to a prison in his home state of California.
Salame is currently scheduled to be sentenced on Tuesday at 11 a.m. in Manhattan federal court. It’s currently unclear when Ellison, Singh, and Wang will be sentenced.
The post Prosecutors Push 5-7 Year Sentence For FTX Exec Ryan Salame appeared first on Cryptonews.