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

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

Ryan Salame, former senior executive at bankrupt cryptocurrency exchange FTXreported to federal prison in October to begin serving his 7.5-year sentence for his role in the collapse of Sam Bankman-FriedThe multi-billion dollar crypto empire.

However, according to a Business Insider reportSalame’s release date was suddenly moved forward by more than a year. Federal Bureau of Prisons records show Salame is now scheduled to be released on March 1, 2031, just over a year before his original sentence.

Salame pleaded guilty to criminal charges in May 2023 and began his sentence at the Cumberland Federal Correctional Institution. He was deeply involved in Bankman-Fried’s operations and was among other FTX executives who pleaded guilty in connection with the fraudulent scheme. Although the exact reason for this shortage of sentences remains unclear, the report notes that Salame’s lawyers did not respond to requests for comment.

In 2019, Ryan Salame joined Alameda Research after connecting with Bankman-Fried at a blockchain conference. Alameda Research was FTX’s hedge fund, using its own 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 poor fund management, lack of liquidity, and large volume of withdrawals. FTX filed for bankruptcy because it could not manage all of its customer transactions due to “low liquidity”.

Furthermore, the exchange spent illegally client funds, as well as illegally funded Alameda loans and research projects. Prosecutors say Salame helped FTX accept customer deposits through a U.S. bank account without having the required licenses.