Bitrabo Editorial
Ryan Salame, a former high-ranking official at Alameda Research and co-CEO of bankrupt crypto exchange FTX, has been sentenced to 90 months in prison for involvement in illegal political contributions and operating an unlicensed money transmitter business.
Conspiracy Charges in Financial and Political Schemes
US District Judge Lewis A. Kaplan delivered the sentencing after Salame pleaded guilty to conspiracy to defraud the Federal Election Commission and conspiracy to run an unlicensed money-transmitting business.
The United States Attorney for the Southern District of New York, Damian Williams, highlighted the significance of Salame’s actions in undermining public trust in American elections and the financial system’s integrity.
Court documents and statements revealed that Salame held top positions at Alameda Research and FTX’s trading arm between 2019 and 2021. He later became co-CEO of FTX’s Bahamian affiliate, FTX Digital Markets Ltd.
FTX Executive’s Covert Contributions
Apart from the unlicensed money-transmitting business, US authorities accused Salame of colluding with Samuel Bankman-Fried and Nishad Singh, FTX executives, to make undisclosed campaign contributions linked to Bankman-Fried.
The contributions, amounting to tens of millions of dollars, aimed to boost Bankman-Fried’s reputation in Washington, elevate FTX’s visibility, and influence politicians favorable to FTX, Alameda, or Bankman-Fried.
Alongside the 90-month prison sentence, Salame will serve three years of supervised release and needs to pay over $6 million in forfeiture and more than $5 million in restitution for the financial damage caused.
Image source: Bloomberg, chart from TradingView.com