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- Ryan Salame, an ex-FTX executive, was sentenced to 7 ½ years for fraud and campaign-finance crimes.
- One prosecutor said Salame's crimes eroded public trust in elections and financial institutions.
- He must pay a $6 million fine and $5 million in restitution. He must also give up his Porsche.
Ryan Salame, a former top executive at FTX and member of Sam Bankman-Fried's inner circle, has been slapped with a hefty prison sentence.
Salame is one of four top executives to plead guilty since the crypto exchange's collapse in 2022. The 30-year-old Massachusetts native was a high-ranking official at Bankman-Fried's Alameda Research before becoming co-CEO of FTX's Bahamian affiliate in 2021.
He was sentenced Tuesday to 7 ½ years in prison on fraud and campaign-finance charges, federal prosecutors in New York announced.
Prosecutors accused Salame of conspiring with Bankman-Fried and other execs to defraud FTX investors and customers by transferring their funds and then lying to US banks about it.
Prosecutors also said that he helped Bankman-Fried make hundreds of illegal political-campaign donations and intentionally hid Bankman-Fried's involvement in the contributions to get legislation passed that would serve his personal agenda.
"Ryan Salame agreed to advance the interests of FTX, Alameda Research, and his co-conspirators through an unlawful political influence campaign and through an unlicensed money transmitting business, which helped FTX grow faster and larger by operating outside of the law," US Attorney Damian Williams said in a press release. "Salame's involvement in two serious federal crimes undermined public trust in American elections and the integrity of the financial system. Today's sentence underscores the substantial consequences for such offenses."
Salame's sentence came on the heels of Bankman-Fried's 25-year prison sentence on fraud and money-laundering charges, which was handed down in March.
Salame is the first of Bankman-Fried's deputies to get prison time. His sentence also includes three years of supervised release, a $6 million fine, and $5 million in restitution. He must also give up two of his Massachusetts properties and his Porsche, The New York Times reported.
Lawyers for Salame did not immediately respond to a request for comment from Business Insider.