FTX Executive Ryan Salame Sentenced to Seven and a Half Years in Prison

Ryan Salame, a former top executive at the collapsed cryptocurrency exchange FTX, has been sentenced to seven and a half years in prison, marking the first of Sam Bankman-Fried’s inner circle to receive prison time.

The 30-year-old Mr. Salame, a trusted lieutenant of FTX’s founder, pleaded guilty to a campaign finance law violation and operating an unlicensed money transmitting business. He is one of four top deputies at FTX who have pleaded guilty to crimes since the company’s downfall in November 2022.

Prosecutors had recommended a sentence of five to seven years, but Mr. Salame’s sentence exceeded that range. Defense lawyers had requested an 18-month sentence.

Before FTX’s collapse, Mr. Salame played a key role in the company, overseeing its subsidiary in the Bahamas. As FTX grew into a $32 billion business, he indulged in a lavish lifestyle, enjoying expensive cars, private jets, and even purchasing restaurants in Massachusetts. He was also a prolific political donor, contributing over $24 million to Republican candidates in the 2022 midterm elections.

Following FTX’s implosion, Mr. Salame became a target of federal prosecutors, who searched his home in Maryland. Mr. Bankman-Fried was charged with embezzling $8 billion from FTX’s customers to fund political contributions, investments, and real estate purchases. Three other top FTX executives have pleaded guilty to financial crimes and are awaiting sentencing.

In September, Mr. Salame admitted to acting as an illegal “straw donor” for Mr. Bankman-Fried to evade federal disclosure requirements. As part of his plea deal, he agreed to pay a $6 million fine, over $5 million in restitution, and forfeit two properties in Massachusetts and his Porsche.

Prosecutors argued that Mr. Salame was motivated by money and influence, withdrawing millions from FTX even as the company collapsed. His defense lawyers claimed he was unaware of Mr. Bankman-Fried’s actions and that FTX’s demise brought shame and instability to his family.

Mr. Salame, who is in a relationship with former crypto industry lobbyist Michelle Bond, has begun to address a substance abuse problem and plans to attend law school. Unlike other FTX executives, he did not testify against Mr. Bankman-Fried in court but provided assistance to the government in preparing for the trial.