Former FTX executive, Ryan Salame, has been sentenced to 90 months in prison by U.S. federal prosecutors for his involvement in making tens of millions of dollars in unlawful campaign donations. Salame, who served as the co-CEO of FTX's Bahamian subsidiary, pleaded guilty to the charges in September.
The unlawful donations were aimed at supporting causes favored by FTX's founder, Sam Bankman-Fried, who himself was sentenced to 25 years in prison earlier this year for embezzling $8 billion from FTX customers. Bankman-Fried was found guilty on seven fraud and conspiracy counts related to FTX's collapse in 2022, described as one of the largest financial frauds in U.S. history.
Prosecutors revealed that Salame, Bankman-Fried, and another former FTX executive, Nishad Singh, utilized FTX customer funds to contribute to political candidates advocating for crypto-friendly legislation.
In addition to the prison term, Salame, aged 30, has been ordered to serve three years of supervised release and pay over $6 million in forfeiture and more than $5 million in restitution. U.S. Attorney for the Southern District of New York, Damian Williams, emphasized that Salame's actions eroded public trust in American elections and the financial system.
Salame, a significant donor in the 2022 election cycle, contributed over $24 million to Republican candidates and causes. His guilty plea included charges of conspiracy to make unlawful political contributions and conspiracy to operate an unlicensed money transmitting business.
