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Highlights
- Ryan Salame sentenced to 7.5 years for illegal contributions and fraud.
- Salame ordered to pay over $11 million in forfeiture and restitution.
- Ex-FTX exec involved in unlicensed money transmitting and political fraud.
Former FTX executive Ryan Salame has been sentenced to 90 months (7.5 years) in prison after pleading guilty to charges of making unlawful political donations and running an unauthorized money transfer business.
Ryan Salame Sentenced to 90 Months in Prison
Ryan Salame, who previously served at the executive level at Alameda Research and later became the co-CEO of the Bahamian affiliate of FTX exchange, was accused of embezzling company funds and engaging in covert political lobbying. The penalty was imposed by the U. S. District Judge Lewis A. Kaplan and it implies 90 months of imprisonment and three years of supervised release.
Furthermore, Salame is required to pay more than $6 million in forfeiture and over $5 million in restitution. US Attorney Damian Williams pointed out that Salame’s actions not only were unlawful but also undermined the legal process, the public’s trust in the financial system in America, and the integrity of the electoral process in the United States of America.
While working at Alameda Research and FTX, Salame was engaged in activities that directly circumvented several regulatory measures. This involved the use of an entity known as “North Dimension” to transfer funds without the required licenses.
Furthermore, Salame was involved in another fraud to increase the political influence of FTX’s founders in exchange for millions of dollars in concealed campaign contributions and providing U. S. bank with false information.
Background and Legal Proceedings
Ryan Salame’s legal issues relate to his past employment with Alameda Research and FTX. Working with Sam Bankman-Fried, the founder of FTX, put him in the middle of one of the biggest financial and political scandals of the recent years.
Salame’s sentencing comes after the failure of FTX in late 2022, which led to an investigation and subsequent legal actions against the company and its management.
The case against Salame was made stronger by his confessions and the statements of other former FTX officials charged with embezzlement, including the founder of FTX, Sam Bankman-Fried, who received 25 years in prison.
Unlike some of his colleagues, Salame did not enter into a cooperation agreement with the United States authorities but was seen to have reported some potential frauds at FTX to the Bahamian authorities earlier. These actions, together with providing the investigators with numerous documents, were part of the legal defense, but they did not save him from a long prison term.
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