NEW YORK, NY – Ryan Salame, 30, of Potomac, Maryland, will spend the next 7.5 years behind bars after being sentenced today to 90 months in prison for his role in the sprawling FTX fraud. The sentence, handed down by U.S. District Judge Lewis A. Kaplan, comes after Salame pled guilty to conspiracy to make unlawful political contributions and defraud the Federal Election Commission, as well as conspiracy to operate an unlicensed money transmitting business.
U.S. Attorney for the Southern District of New York, Damian Williams, didn’t mince words, stating, “Ryan Salame agreed to advance the interests of FTX, Alameda Research, and his co-conspirators through an unlawful political influence campaign and through an unlicensed money transmitting business, which helped FTX grow faster and larger by operating outside of the law.” Williams emphasized that Salame’s actions “undermined public trust in American elections and the integrity of the financial system.”
Court filings reveal that Salame, a high-ranking official at Alameda Research – the crypto trading firm founded by the disgraced Samuel Bankman-Fried – ascended to co-CEO of FTX’s Bahamian affiliate, FTX Digital Markets Ltd., in October 2021. During his tenure at both firms, Salame conspired with Bankman-Fried and others to operate an illegal money transmitting business. The operation leveraged FTX, Alameda Research, and a shell entity dubbed “North Dimension” to move FTX customer funds without proper licensing, all while making false statements to U.S. banks to maintain the illicit operation.
Beyond the unlicensed financial dealings, Salame participated in a scheme to funnel illegal campaign contributions. Starting around 2020, Salame, Bankman-Fried, and FTX executive Nishad Singh conspired to donate funds in a way that masked Bankman-Fried’s involvement. The goal? To boost Bankman-Fried’s profile in Washington D.C., elevate FTX’s standing, and sway candidates who might support legislation favorable to FTX, Alameda, or Bankman-Fried’s personal ambitions. Over 300 unlawful contributions, totaling tens of millions of dollars, were made using straw donors and corporate funds, resulting in false reporting to the Federal Election Commission.
The 90-month prison sentence isn’t Salame’s only punishment. He’s also been sentenced to three years of supervised release and ordered to pay over $6 million in forfeiture and more than $5 million in restitution. The Federal Bureau of Investigation received praise from Williams for their work on the case. The prosecution was led by Assistant U.S. Attorneys Danielle Kudla, Samuel Raymond, Thane Rehn, Nicolas Roos, and Danielle Sassoon, with the case handled by the Office’s Securities and Commodities Fraud Task Force, aided by the Illicit Finance and Money Laundering and Complex Frauds and Cybercrime Units.
This sentencing marks another blow to the inner circle of Sam Bankman-Fried, and signals the Department of Justice’s continued crackdown on financial crimes within the burgeoning cryptocurrency industry. The case serves as a stark warning: operating outside the law, even in the Wild West of crypto, carries severe consequences. Expect more shoes to drop as the investigation into the FTX collapse continues.
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Key Facts
- State: New York
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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