FTX’s Ryan Salame’s prison sentence shortened by over year: report

FTX executive Ryan Salame’s prison sentence has been shortened by more than a year, with his new release date set for March 2031.

Ryan Salame, a former top executive at failed cryptocurrency exchange FTX, reported to federal prison in October to begin serving a 7.5-year sentence for his role in the collapse of Sam Bankman-Fried’s multibillion-dollar crypto empire.

However, according to a Business Insider report, Salame’s release date was suddenly pushed back more than a year. Federal Bureau of Prisons records show Salame is scheduled to be released on March 1, 2031, a year before his original sentence.

Salame pleaded guilty to the charges in May 2023 and began his sentence at the Federal Penitentiary in Cumberland. He was deeply involved in Bankman-Fried’s operations and was among other FTX executives who pleaded guilty in connection with the fraud scheme. While the exact reason for the low sentence remains unclear, the report stated that Salame’s lawyers did not respond to requests for comment.

Ryan Salame became part of Alameda Research in 2019 after connecting with Bankman-Fried at a blockchain conference. Alameda Research was FTX’s hedge fund; It used its technology and trading platform to trade thousands of digital assets, including major coins, non-fungible tokens, and altcoins. Salame also became CEO of FTX’s Bahamas subsidiary.

In 2022, FTX collapsed due to mismanagement of funds, lack of liquidity, and large volumes of withdrawals. FTX filed for bankruptcy because it was unable to process all customer transactions due to “low liquidity.”

Additionally, the exchange illegally spent customer funds, illegally funded loans, and Alameda research projects. Prosecutors allege Salame helped FTX accept customer deposits through a U.S. bank account without having the necessary licenses.