U.S. Prosecutors Seek Lengthy Prison Term for Former FTX Executive Ryan Salame

U.S. prosecutors are seeking to put former FTX executive Ryan Salame, Sam "SBF" Bankman-Fried's accused wingman, in prison for between five and seven years for crimes that eventually sunk the FTX crypto exchange.

Federal prosecutors in Manhattan federal court on May 21 filed a memo setting forth the view a stiff sentence is warranted to protect the public after the defendant pleaded to committing "serious crimes" that were connected to the embezzlement of funds that had been safeguarded for FXT investors. In a court filing viewed by Bloomberg, U.S. prosecutors demanded "just punishment" fitting the scale of his crime, as opposed to public defenders' argument that he should serve no more than 18 months.

The prosecutors said:

"The campaign finance offense is one of the largest-ever in American history, and the unlicensed money transmitting business exchanged more than $1 billion without proper supervision"

Salame is thus set to be sentenced on May 28 for his role in helping SBF siphon for $10 billion of users' funds. "Only a meaningful period of incarceration could adequately deter the defendant and others and promote respect for the law."

The Southern District of New York District Court on April 1 sentenced SBF to stew in prison for the next 25 years after his conviction on seven felony charges. Salame will be the first accomplice of SBF to be declared.

In 2019, Salame joined Alameda Research in Hong Kong and eventually became the CEO of FTX Digital Markets, the Bahamas-based subsidiary of FTX. The other well-known members who run the FTX scam and are yet to be sentenced are Caroline Ellison, Nishad Singh, and Gary Wang.

Many United States lawmakers have started rallying behind one bill that they say could answer such questions and at least prevent the next FTX—if it becomes law.

For instance, North Carolina's Wiley Nickel has been urging those on the floor to vote and pass the Financial Innovation and Technology for the 21st Century (FIT21) Act, which would greatly clarify exactly how the country's Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) deal with crypto assets.