Ryan Salame, a prime govt on the collapsed cryptocurrency trade FTX, was sentenced to seven and a half years in jail on Tuesday, making him the primary of Sam Bankman-Fried’s circle of advisers at FTX to obtain jail time.
Mr. Salame, 30, a trusted lieutenant of Mr. Bankman-Fried, the trade’s founder, pleaded responsible final 12 months to a marketing campaign finance regulation violation and a cost of working an unlicensed cash transmitting enterprise. He’s one in every of 4 prime deputies within the FTX empire who’ve pleaded responsible to crimes for the reason that firm imploded in November 2022.
Mr. Salame’s sentence exceeded the 5 to seven years that prosecutors had advisable. Protection legal professionals had requested an 18-month sentence.
Earlier than FTX failed, Mr. Salame was a key determine on the trade, overseeing its subsidiary within the Bahamas, the place the corporate was primarily based. As FTX grew right into a $32 billion enterprise, Mr. Salame spent lavishly. He loved costly automobiles and personal jets, and purchased eating places within the Berkshires in Massachusetts. He was additionally a prolific political donor, giving greater than $24 million within the 2022 midterm elections, largely to Republican candidates.
After FTX imploded in November 2022, Mr. Salame turned a goal of federal prosecutors, who searched his dwelling in Maryland. Mr. Bankman-Fried was charged with stealing $8 billion from FTX’s clients and utilizing the cash to finance political contributions, enterprise investments and luxurious actual property purchases. Three prime FTX executives — Gary Wang, Nishad Singh and Caroline Ellison — pleaded responsible to monetary crimes and agreed to cooperate with the federal government. All of them await sentencing.
In September, Mr. Salame additionally pleaded responsible, admitting that he had acted as an unlawful “straw donor” who made political contributions on the route of Mr. Bankman-Fried to evade federal disclosure necessities. In a sentencing memo to Choose Lewis A. Kaplan, prosecutors known as it “one of many largest ever” marketing campaign finance offenses in American historical past.
As a part of his plea deal, Mr. Salame agreed to pay a $6 million advantageous and greater than $5 million in restitution, and to forfeit two properties in Massachusetts, in addition to his Porsche.
Within the sentencing memo, prosecutors argued that Mr. Salame was motivated by a want for cash and affect. At the same time as FTX crumbled, he withdrew $5 million from the trade, utilizing the funds to repay private bills and rent a public-relations agency. Hours earlier than the chapter, the prosecutors wrote, Mr. Salame withdrew one other $600,000 from his account on FTX’s U.S. platform.
Final 12 months, Mr. Bankman-Fried was convicted of fraud and conspiracy after a monthlong trial in New York. He has been sentenced to 25 years in jail.
In their very own memo to Choose Kaplan, Mr. Salame’s protection legal professionals mentioned he had not been conscious that Mr. Bankman-Fried was stealing billions of {dollars} from clients. That information “was as surprising and dismaying to Ryan Salame as to everybody else on the planet,” the legal professionals wrote.
They mentioned Mr. Salame’s life had been “decimated in almost each doable method,” and that FTX’s demise introduced “disgrace and instability” to his household. Mr. Salame is in a long-term relationship with Michelle Bond, a former crypto business lobbyist who was additionally a supporter of Mr. Bankman-Fried. In November, Ms. Bond gave beginning to the couple’s first little one, the memo mentioned. Mr. Salame has additionally begun to “grapple significantly” with a substance-abuse downside, his legal professionals wrote, and is planning to attend regulation college.
In contrast to Mr. Wang, Mr. Singh and Ms. Ellison, Mr. Salame didn’t testify in opposition to Mr. Bankman-Fried in court docket final 12 months. However his legal professionals mentioned that he voluntarily produced paperwork and “supplied help and cooperation” to the federal government because it ready for the trial.
