FTX executive sentenced to 7.5 years in prison for betraying Sam Bankman-Fried

Former FTX executive Ryan Salame has been sentenced to 90 months in prison, along with hefty fines, for his involvement in unlawful activities. Salame, who was a top lieutenant of FTX founder Sam Bankman-Fried, pleaded guilty to various charges including conspiracy to make unlawful political contributions and operate an unlicensed money-transmitting business.

The sentencing, which exceeded prosecutors’ recommendations, highlights the severity of Salame’s crimes. His transition from Alameda Research to co-CEO of FTX’s Bahamian subsidiary was marred by millions of dollars spent on real estate and campaign donations. Allegations of mishandling client assets and fraud by Bankman-Fried led to a public fallout, with Salame providing crucial information to authorities.

Several other insiders, including former CEOs and executives, testified against Bankman-Fried, leading to his guilty verdict. U.S. attorney Damian Williams emphasized the consequences of such offenses, stating that Salame’s actions undermined public trust in elections and the financial system.

Salame’s sentencing marks the first among SBF’s executive team since FTX filed for bankruptcy in 2022. The case sheds light on the repercussions of white-collar crimes in the cryptocurrency industry, emphasizing the importance of accountability and integrity.