Former FTX Co-CEO Set to Start Serving Time on Friday

Ryan Salame, the former co-CEO of FTX Digital Markets, will begin serving a seven-and-a-half-year sentence at a U.S. federal correctional facility on October 11.

Salame is the second top executive to receive a prison sentence following FTX founder Sam Bankman-Fried, who is currently serving 25 years for his role in orchestrating and committing fraud.

In 2021, Salame made a major career move and left his senior role at Alameda Research, Bankman-Fried’s crypto hedge fund, to become co-CEO of FTX’s Bahamian subsidiary, FTX Digital Markets. However, he reportedly became involved in questionable financial activities, including significant real estate acquisitions and political donations. His purchase of 35 properties in New Providence, worth an estimated $256.3 million, raised concerns among Bahamian regulators.

The fallout from Salame’s actions has been far-reaching, impacting both himself and the individuals and institutions entangled in the scandal. His large donations to Republican candidates and causes during the 2022 election acted as a cover for the illegal activities happening behind the scenes.

Salame had previously pleaded guilty to charges of conspiracy to make illegal political contributions and defrauding the Federal Election Commission. The authorities charged Salame for conspiring to run an unlicensed money-transmitting business. The sentence was handed down by U.S. District Judge Lewis A. Kaplan.

In a statement, U.S. Attorney Damian Williams said, “Ryan Salame participated in an unlawful political influence campaign to benefit FTX, Alameda Research, and his co-conspirators, while also operating an unlicensed money transmitting business. These actions allowed FTX to expand by bypassing legal regulations. Salame’s involvement in these serious federal offenses compromised the integrity of U.S. elections and the financial system. Today’s sentence highlights the significant consequences of such actions.”

Last month, Salame leveled public accusations against the now-defunct Silvergate Bank, alleging its complicity in FTX’s collapse. In a post on X (formerly Twitter), Salame claimed that Silvergate, a bank specializing in cryptocurrency clients, played a key role in the exchange’s downfall.

He asserted that Silvergate executives advised Alameda Research, FTX’s affiliated trading firm, to use its Silvergate accounts for over-the-counter (OTC) USD trading on behalf of FTX customers. This arrangement, according to Salame, was a temporary measure until FTX could secure its own direct account with Silvergate. This revelation adds another layer of complexity to the ongoing FTX saga and raises questions about the role of banking institutions in the cryptocurrency ecosystem.

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Gairika holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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