US prosecutors are demanding a reduced prison sentence of five to seven years for former FTX executive Ryan Salame, wingman of FTX co-founder Sam “SBF” Bankman-Fried.
Federal prosecutors submitted a sentencing memo to a Manhattan federal court on May 21, requesting Salame to serve a stringent sentence in light of his guilty plea for “serious crimes” associated with the misappropriation of funds from FXT investors.
Bloomberg obtained a court filing in which U.S. prosecutors urged for a “just punishment” commensurate with the gravity of Salame’s offence, in contrast to the position of his attorneys, who advocate for a maximum 18-month sentence.
Prosecutors stated:
“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.”
The court has scheduled Salame’s sentencing for assisting SBF in stealing $10 billion from users’ funds for May 28. “Only a substantial period of incarceration could effectively deter the defendant and others and promote respect for the law,” the prosecutors continued.
In light of SBF’s conviction on seven felony offences, the U.S. District Court for the Southern District of New York imposed a 25-year prison sentence on April 1. The first accomplice of the SBF to receive a sentence is Salame.
Salame commenced employment with Alameda Research in Hong Kong in 2019 and subsequently ascended the corporate hierarchy to become CEO at FTX Digital Markets, the Bahamas-based subsidiary of FTX.
Still awaiting sentencing are Caroline Ellison, Nishad Singh, and Gary Wang, who were also significant participants in the FTX fraud.
