Ryan Salame, a former top executive at the now-defunct cryptocurrency exchange FTX, has been sentenced to seven and a half years in prison, marking the first prison term among Sam Bankman-Fried’s inner circle. Salame, 30, who was a trusted deputy of Bankman-Fried, pleaded guilty last year to violations of campaign finance law and operating an unlicensed money-transmitting business.
The sentence, handed down by Judge Lewis A. Kaplan in a New York federal court, exceeded the five to seven years recommended by prosecutors. Defense lawyers had sought a significantly lighter sentence of 18 months. Salame’s sentencing underscores the gravity of his actions and the broader repercussions of FTX’s collapse.
Salame played a crucial role at FTX, overseeing its Bahamas-based subsidiary as the company grew into a $32 billion enterprise. During this period, he indulged in a lavish lifestyle, acquiring expensive cars, flying private jets, and purchasing restaurants in the Berkshires, Massachusetts. His political contributions were equally extravagant, donating over $24 million in the 2022 midterm elections, predominantly to Republican candidates.
Following FTX’s dramatic implosion in November 2022, Salame became a focal point for federal prosecutors. His home in Maryland was raided, and he faced intense scrutiny. Bankman-Fried, the founder of FTX, was accused of embezzling $8 billion from customers to fund political contributions, venture investments, and luxury real estate purchases. Three other senior FTX executives—Gary Wang, Nishad Singh, and Caroline Ellison—pleaded guilty to financial crimes and are cooperating with the government, with their sentencing pending.
In September, Salame admitted to being an illegal “straw donor,” making political contributions under Bankman-Fried’s direction to circumvent federal disclosure requirements. Prosecutors described this as “one of the largest ever” campaign finance violations in U.S. history. As part of his plea agreement, Salame will pay a $6 million fine, over $5 million in restitution, and forfeit two properties in Massachusetts and his Porsche.
Prosecutors portrayed Salame as driven by greed and a desire for influence. Even as FTX was on the brink of collapse, he withdrew $5 million from the exchange to cover personal expenses and hire a public relations firm. In the hours leading up to FTX’s bankruptcy filing, Salame withdrew an additional $600,000 from his account on FTX’s U.S. platform.
Bankman-Fried, convicted of fraud and conspiracy after a high-profile trial last year, is currently serving a 25-year prison sentence. His fraudulent activities have been labeled one of the largest financial frauds in U.S. history.
Salame’s defense lawyers argued that he was unaware of the extent of Bankman-Fried’s theft, claiming that the revelations of FTX’s financial misconduct were as shocking to Salame as to the public. They emphasized that Salame’s life has been profoundly impacted, describing the downfall of FTX as bringing “shame and instability” to his family.
Salame, who is in a long-term relationship with Michelle Bond, a former crypto industry lobbyist and supporter of Bankman-Fried, recently became a father. His lawyers highlighted his efforts to address a substance abuse problem and his plans to attend law school.
As the legal proceedings against former FTX executives continue, Salame’s sentence serves as a stark reminder of the personal and professional consequences stemming from one of the most significant financial scandals in recent history.
