Former FTX executive Ryan Salame is asking for 18 months in prison

Lawyers for Ryan Salame, a former executive at failed cryptocurrency exchange FTX who pleaded guilty to his role in the company’s collapse, have asked a court to sentence their client to 18 months of prison in a next hearing scheduled for May 28.

According to a sentencing memorandum seen by Inner City Press, Salame’s attorneys are asking the court for leniency in the form of a recommended prison term, in addition to the restitution and forfeiture obligations their client has agreed to.

Salame asks for 18 months in prison

While Salame worked for FTX and its trading sister company Alameda Research, he managed fiduciary client conversions and wire deposits, managed political contributions and directed charitable initiatives using Alameda funds in the Bahamas.

A year after the implosion of the FTX empire in November 2022, Salame pleaded guilty to criminal charges related to the events, including conspiracy to defraud the Federal Election Committee and operating an unlicensed money transmission business . He also agreed to cooperate with US authorities along with his former colleagues Nishad Singh, Caroline Ellison and Gary Wang.

As part of the settlement, Salame paid a $6 million fine to the US government and $5 million to FTX’s debtors, forfeiting two Massachusetts homes and his 2021 Porsche car. declared guilty the former FTX executive could sentence him to ten years in prison; however, his lawyers are asking for a prison sentence of less than two years.

Salame’s lawyers argued in the memorandum filing that their client’s role at FTX was more operational and less related to fraud. They said he did not know that the four main leaders of FTX and Alameda had conspired to lie and steal customer funds. The lawyers insisted that Salame did not lie or steal from anyone.

Lawyers say Salame was duped

In addition, Salame’s lawyer cited his cooperation with the US government for the proposed lenient sentence, explaining that he was the first to alert Bahamian authorities when he learned of the FTX fraud. They said their client was remorseful and made efforts to deal with his substance abuse problems.

In addition, the lawyers mentioned that Salame was misled and suffered financial loss as a result of the collapse of FTX.

With FTX founder Sam Bankman-Fried sentenced to 25 years behind bars, what prison term the court would impose on Salame remains to be seen.

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