By Mark Hunter
5 hours agoWed May 22 2024 08:51:58
Reading Time: 2 minutes
- Federal prosecutors have recommended a five to seven-year prison sentence for former FTX executive Ryan Salame
- Salame has pleaded guilty to serious offenses related to the collapse of the cryptocurrency empire
- Salame’s legal team has argued for a significantly shorter sentence of no more than 18 months
Federal prosecutors have recommended a prison sentence of five to seven years for former FTX executive Ryan Salame, who is facing charges related to the multibillion-dollar collapse of the cryptocurrency empire. This recommendation was outlined in a sentencing memo filed in federal court in Manhattan on Tuesday, where the 30-year-old has pleaded guilty to the litany of serious offenses. Prosecutors argue that a substantial sentence is necessary to ensure he receives just punishment, whereas Salame’s legal team has argued for a significantly shorter sentence of no more than 18 months.
Salame Pleaded Guilty in August
Salame was co-chief executive of FTX alongside Sam Bankman-Fried, but he has kept a far lower profile since the exchange collapsed in November 2022. Salame was revealed last August to be negotiating a guilty plea over charges including violations of campaign finance laws, which prosecutors labeled “one of the largest-ever in American history” as well as the operation of an unlicensed money-transmitting business.
Salame pleaded guilty a month later, agreeing to forfeit a staggering $1.55 billion in assets, including a $6 million cash payment, two Massachusetts properties, four restaurants, and a Porche 911. Bankruptcy filings also revealed loans of $55 million from Bankman-Fried’s companies to Salame.
More to Come
The former executive was warned at the time that he faces up to a decade behind bars, and prosecutors are clearly hoping to get as close to that as possible. Other members of Bankman-Fried’s close associates, including Caroline Ellison, Nishad Singh, and Gary Wang, who have also cooperated with authorities and provided testimony against Bankman-Fried, are yet to receive their sentences.Bankman-Fried himself was sentenced to 25 years in prison in March, which he has appealed.
