Former FTX Executive Ryan Salame’s Prison Sentence Reduced by One Year
Who is Ryan Salame? The former FTX CEO, has had his prison sentence reduced by one year, with his release now scheduled for March 2031 according to records from the Bureau of Prisons.
Salame pleaded guilty in September 2023 to conspiracy to operate an unlicensed money transmitting business and campaign finance fraud.
Initially sentenced to 7.5 years in prison in May 2023, his original release date was projected for April 2032, followed by three years of supervised release.
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Reasons Behind Ryan Salame Prison Time Reduction Remain Unclear
The reasons for the reduction in Salame’s prison term remain unclear, and inquiries to the FCI Cumberland correctional facility, where he is currently serving time, have gone unanswered.
Salame’s attorneys had previously argued for a significantly shorter sentence, claiming their client was unaware of the fraudulent activities at the center of the FTX collapse and emphasizing the severity of asset forfeitures as punishment.
However, U.S. federal prosecutors had sought a sentence of five to seven years, with Judge Lewis A. Kaplan ultimately imposing a 90-month term due to the financial devastation caused by FTX’s downfall.
Ryan Salame’s sentence shortened by a year after showing good behavior in prison.
A controversial move, given his involvement in one of crypto’s biggest collapses. #FTX #CryptoFraud #RyanSalame pic.twitter.com/M4YBbsNZDg
— Mrlisserr (@ETHmrlisserr) December 27, 2024
In August 2023, Salame filed a petition to nullify his guilty plea, asserting that prosecutors reneged on key elements of their agreement, including an implied assurance to cease investigating his partner, Michelle Bond, for campaign finance violations.
Despite this claim, federal authorities resumed their investigation into Bond, and Salame’s attempts to delay his sentence and void the plea were unsuccessful. On Oct. 11, Salame surrendered to FCI Cumberland, a medium-security facility.
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FTX To Finalize Bankruptcy Claims By January 2025
As reported, the FTX bankruptcy estate has announced an updated timeline for creditor and former customer reimbursements. The estate aims to finalize claims by January 2025 and expects initial payouts to begin in March 2025.
To streamline the process, FTX plans to collaborate with distribution agents starting in December 2024. These agents will manage the payout system and oversee the customer reimbursement portal.
In October, the FTX bankruptcy estate reached a $228 million settlement with the cryptocurrency exchange Bybit to recover funds for repaying former FTX customers and creditors.
Under the terms of the settlement, FTX will retrieve $175 million in digital assets held by Bybit, along with an additional $53 million in BIT tokens, which will be sold to Mirana Corp, Bybit’s investment arm.
FTX originally launched a $1 billion lawsuit against Bybit and Mirana in late 2023, alleging that these entities used special privileges and “VIP” access to preemptively withdraw $327 million in digital assets and cash in the days leading up to FTX’s downfall.
Attorneys for FTX’s estate argued that Bybit and Mirana received priority withdrawal access from FTX executives, potentially influencing the estate’s financial losses during its collapse.
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