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FTX top manager sentenced to 7.5 years in prison

Court for the Southern District of New York sentenced ex-CEO of the Bahamas division of FTX Ryan Salameh to 90 months (7.5 years) in prison.

He also received three years of probation and was ordered to pay $6 million in forfeiture and more than $5 million in restitution, according to the U.S. Department of Justice.

Prosecutor Damian Williams said Salameh's actions undermined public confidence in elections and the financial system.

“Salame agreed to further the interests of FTX, Alameda Research and his associates through an illegal political influence campaign and unlicensed funds transfer activities. Illegal activities helped FTX grow faster and become bigger,” he said.

In September 2023, Salameh pleaded guilty to criminal charges related to the collapse of the cryptocurrency exchange. This involves a conspiracy to make illegal donations and conduct an unlicensed money transmitting business.

Previously, lawyers requested a sentence of 1.5 years in prison for their client, but the prosecution demanded a more severe sentence.

In November 2022—two days before FTX filed for bankruptcy—a top executive alerted Bahamian authorities to a potential scam.

Co-founder and former CEO of the exchange Sam Bankman-Fried (SBF) was found guilty by a jury on all charges in November 2023. In March 2024, he was sentenced to 25 years in prison. SBF's lawyers filed an appeal against the court's decision.

Before Salame, former head of Alameda Research Caroline Ellison and FTX technical director Gary Wang, as well as the head of the exchange’s engineering department Nishad Singh, agreed to admit guilt.

Source: Cryptocurrency

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