First FTX Executive Sentenced To 7.5 Years In Prison

Key Points:

• Ex-FTX Bahamas CEO, Ryan Salame, got 7.5 years in prison.
• Salame alerted authorities to FTX’s potential fraud.
• FTX founder, Sam Bankman-Fried, got 25 years and plans appeal.

Ryan Salame, ex-CEO of FTX’s Bahamas subsidiary, was sentenced to 7.5 years for his involvement in the $10 billion theft. He was the first FTX executive to be sentenced.

Ryan Salame, the former chief executive of cryptocurrency exchange FTX’s Bahamas subsidiary, has been sentenced to 7.5 years in prison. Salame became the first executive from the circle of FTX founder Sam Bankman-Fried to be sentenced since the collapse of the cryptocurrency exchange.

First FTX Executive Sentenced: Ryan Salame’s Case

Salame was sentenced in a Manhattan courtroom after reaching a plea deal with federal prosecutors in September—just weeks before Bankman-Fried was set to stand trial over the alleged theft of about $10 billion from customers, investors, and lenders.

Surprisingly, Salame’s prison term was longer than what prosecutors initially asked for. Despite the defense pushing for an 18-month sentence, and the government calling for five to seven years, the judge went with a longer term.

This may be indicative of how Judge Lewis A. Kaplan intends to handle sentencing for the other former executives of FTX involved. Salame’s legal team pushed to distance their client from the fraudulent activities that took place at FTX.

Readmore: Sam Bankman-Fried Trial Live Updates: Latest News And Insights

How Salame Raised the Alarm?

In court, they argued that Salame was just as taken aback by the revelations as anyone. Even though he did not sign up as a cooperating witness, Salame was the first to alert Bahamian authorities of the possibility of fraud at the exchange.

Before the collapse, Salame was a key lieutenant at FTX, after meeting Bankman-Fried at a blockchain conference in 2019. His remit involved overseeing the relocation of FTX from Asia to the Bahamas.

Bankman-Fried was handed a 25-year prison sentence in March. He vowed to appeal the decision. The case continues in the U.S. District Court for the Southern District of New York.