Ryan Salame, a former high-ranking executive at the now-defunct cryptocurrency exchange FTX, has had his prison sentence shortened by more than a year. His new release date is set for March 2031.
Salame, who was involved in the collapse of Sam Bankman-Fried’s multi-billion-dollar crypto empire, reported to federal prison in October to start serving his 7.5-year sentence. However, as per a Business Insider report, his release date has been unexpectedly advanced. Federal Bureau of Prisons records indicate that he is now scheduled to be released on March 1, 2031, over a year earlier than his original sentencing.
Salame pleaded guilty to criminal charges in May 2023 and began his incarceration at the Federal Correctional Institution in Cumberland. He was closely involved in Bankman-Fried’s operations and was among the FTX executives who admitted guilt in relation to the fraud scheme. The exact reason for the reduction in his sentence remains unclear, and the report noted that Salame’s attorneys did not respond to requests for comment.
In 2019, after meeting Bankman-Fried at a blockchain conference, Salame joined Alameda Research. Alameda Research was FTX’s hedge fund, trading thousands of digital assets, including major coins, non-fungible tokens, and alternative coins, using its own technology and trading platform. Salame also became the CEO of FTX’s Bahamas subsidiary.
In 2022, FTX collapsed due to mismanagement of funds, a lack of liquidity, and a large number of withdrawals. The exchange filed for bankruptcy because it couldn’t handle all customer transactions due to “low liquidity.” Additionally, FTX illegally used customer funds, and also provided illegal funding for loans and projects of Alameda Research. Prosecutors allege that Salame assisted FTX in accepting customer deposits through a U.S. bank account without the necessary licenses.
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