(CTN News) – Ryan Salame, a former executive at FTX, has been sentenced to more than seven years in prison after pleading guilty to election fraud charges and conspiracy to operate an unlicensed money transmitting business while working at Sam Bankman-Fried’s cryptocurrency exchange.
Salame, 30, was among four high-ranking former managers of FTX who pleaded guilty to federal criminal charges following the company’s collapse in late 2022.
His sentencing marks a significant development in the fallout from the downfall of one of the cryptocurrency world’s most prominent figures.
Unlike his co-defendants, Caroline Ellison, Nishad Singh, and Gary Wang, Salame did not cooperate with prosecutors by testifying against Sam Bankman-Fried, FTX’s founder and former chief executive.
Salame’s Involvement in FTX Campaign Finance Scandal
Bankman-Fried was sentenced to 25 years in March after being found guilty of embezzling billions from FTX customers to fuel high-stakes bets.
Salame’s involvement with FTX began in 2019 when he joined the affiliated hedge fund Alameda Research. He later became co-chief executive of FTX’s Bahamian affiliate.
During his tenure, Salame engaged in illegal campaign finance activities, serving as a straw donor to funnel over $100 million in donations to US political campaigns, particularly leading up to the 2022 midterm elections.
These donations were made to candidates from both major political parties, allegedly to curry favor with Bankman-Fried.
Case of Salame: Cryptocurrency Campaign Finance Scandal
Salame confessed that the donations were funded by transfers from an Alameda subsidiary and were categorized as loans, though he admitted he never intended to repay them. He also met with prominent politicians, including Republican Senator Mitch McConnell and then-Congressman Kevin McCarthy.
The prosecution described Salame’s campaign finance scheme, involving over 300 donations, as “one of the largest-ever in American history.” They sought a seven-year sentence for Salame, highlighting that his actions undermined public trust in American elections and the financial system.
Salame’s defense argued for a much lighter sentence, claiming he was not part of Bankman-Fried’s inner circle and was shocked by the discovery of FTX’s misappropriation of funds in November 2022.
Damian Williams, the US attorney in Manhattan, emphasized that Salame’s crimes contributed to FTX’s rapid growth outside the bounds of the law, thereby undermining public trust.
Salame was ultimately sentenced to 90 months in prison. His case underscores the legal and ethical challenges faced by the cryptocurrency industry, particularly as it intersects with traditional financial and political systems.
