Ryan Salame, the former FTX Digital Markets co-CEO, is set to begin a 7.5-year prison sentence for his involvement in fraud linked to the cryptocurrency exchange. Before heading to prison, Salame sparked a social media buzz, particularly on LinkedIn, where he humorously announced his “new position” as an “inmate” at FCI Cumberland. His post featured a cartoon of people celebrating around a cupcake.
“I’m happy to share that I’m starting a new position as Inmate at FCI Cumberland!” Salame wrote on LinkedIn.
FCI Cumberland is a medium security Federal Correctional Institution for men in Maryland “with an adjacent minimum security satellite camp,” as per their official site.
In May 2024, Ryan Salame was convicted after pleading guilty to multiple charges, including campaign finance fraud and operating an unauthorised money-transmitting business. According to a report in Business Insider, Salame was accused of conspiring with FTX founder Sam Bankman-Fried to embezzle funds from investors and customers, as well as engage in unlawful political contributions.
In particular, the prosecution pointed out that Salame helped Bankman-Fried hide the financial misstatements that caused FTX to collapse. As per reports, he donated a large sum to back Republicans while Bankman-Fried was known for funding the Democrats mostly.
During sentencing, Judge Lewis A. Kaplan condemned Ryan Salame for his actions, reportedly highlighting his withdrawal of $5 million in cryptocurrencies while FTX was collapsing. Kaplan criticised Salame for embodying a “me first” attitude, noting that he deliberately avoided decisions that could have protected FTX customers’ funds. After completing his 7.5-year prison term, the 31-year-old will also serve three years of supervised release.
Before entering prison, Ryan Salame made an attempt to withdraw his guilty plea, claiming that prosecutors violated a condition related to the investigation of his partner, Michelle Bond, who was indicted shortly after his plea deal. According to Business Insider, Salame argued that this breach justified retracting his plea. However, this move backfired when Judge Kaplan subjected him to intense questioning under oath during a court hearing, probing the validity of Salame’s allegations and challenging his credibility.
Salame’s start date for the prison was delayed with multiple delays due to an injury from a dog bite, AOL reports. Nevertheless, he finally arrived at FCI Cumberland on October 11, 2024.
Salame’s sentencing makes him one of the first FTX executives to go to jail after the collapse of the firm in 2022. Other executives who participated in the fraud are Caroline Ellison, the former CEO of Alameda Research; Gary Wang, the co-founder of FTX; Nishad Singh, the head of engineering; all of whom have cooperated with federal investigators and testified against Bankman-Fried during his trial.
Earlier this year, Sam Bankman-Fried, founder of cryptocurrency exchange FTX, was sentenced to 25 years in prison over similar charges involving fraud and conspiracy.
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