US Justice Department Demands up to Seven Years in Prison Against Former FTX Director

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Ryan Salame, one of the former directors of the collapsed crypto exchange FTX, will serve five to seven years in prison. American prosecutors demand this because they accuse him of “serious crimes” that should be punished with “significant punishment.”

 

Salame will hear on May 28 what punishment he will receive for his involvement in the collapse of FTX. The crypto exchange became controversial when customers could no longer access their money. It later emerged that FTX had siphoned off billions of dollars to the Alameda investment fund, where the money was used to make risky investments.

Salame became CEO of FTX’s Bahamas subsidiary in 2021. According to the American Justice Department, he allowed deposits from customers via an American bank account in that role, while he was not allowed to do so. Salame’s lawyers have argued for a sentence of up to 18 months. According to them, Salame was the first to expose the fraud at FTX.

The American businessman is the first director to hear his sentence after the conviction of FTX CEO and founder Sam Bankman-Fried. Two months ago, he was sentenced to 25 years in prison, which he is appealing.

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