Sam Bankman-Fried's Close Aide Becomes First Executive Facing Sentence Following FTX Collapse

The first close associate of Sam Bankman-Fried to plead guilty in the aftermath of FTX‘s downfall will be sentenced on Tuesday.

What Happened: Ryan Salame, former CEO of FTX's Bahamas subsidiary, struck a plea deal with federal prosecutors in September. This occurred just weeks before Bankman-Fried was set to go on trial for allegedly stealing about $10 billion from customers, investors, and lenders.

Salame pleaded guilty to violating campaign finance laws and operating an unlicensed money transmitter. Bloomberg reported that prosecutors are seeking a sentence of five to seven years, while the defense argues for 18 months or less.

Judge Lewis A. Kaplan‘s decision could set a precedent for other former FTX executives facing charges. Salame's attorneys claim he was unaware of the fraud and believed the companies were legitimate and profitable.

Prosecutors and defense attorneys have painted contrasting pictures of Salame, from a key player in a major campaign finance offense to a family man involved in charity work.

Salame did not become a cooperating witness but was the first to alert Bahamian authorities about potential fraud at FTX. He also handed over extensive documents to investigators.

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Salame joined Alameda Research after meeting Bankman-Fried in 2019 and rose to a top executive position. Since FTX’s bankruptcy, he has been focusing on his family and personal recovery.

Why It Matters: Salame’s sentencing is a significant development in the ongoing fallout from the collapse of FTX. The case has already seen major developments, including the cooperation of the former CTO in speeding up Bankman-Fried’s conviction.

Additionally, FTX has been actively working to repay customers, amassing billions in cash. This effort is part of a broader attempt to restore some level of trust and financial stability in the wake of the scandal.

Furthermore, the whereabouts of Bankman-Fried have been a topic of interest, especially after his move from Brooklyn jail to an undisclosed location.

Read Next: Donald Trump: ‘I Will Ensure That The Future Of Crypto And Bitcoin Will Be Made In The USA’

Photo by Sergei Elagin on Shutterstock

This story was generated using Benzinga Neuro and edited by Pooja Rajkumari

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Posted In: CryptocurrencyNewsMarketsGeneralFTXPooja RajkumariRyan SalameSam Bankman-FriedStories That Matter
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