Ryan Salame

Ryan Salame
Born:	1994 United States
Charges:
Sentence:	7.5 years in federal prison
Facility:	FCI Cumberland
Status:	Incarcerated

Ryan Salame is an American former cryptocurrency executive who served as co-CEO of FTX Digital Markets, the Bahamian subsidiary of the FTX cryptocurrency exchange. Unlike other FTX executives who cooperated with prosecutors, Salame pleaded guilty but did not become a cooperating witness against Sam Bankman-Fried. In May 2024, he was sentenced to 7.5 years in federal prison for campaign finance violations and operating an unlicensed money transmitting business—the harshest sentence of any FTX executive who pleaded guilty.

Early Life and Education

Ryan Salame was born in 1994 in the United States and grew up in Sandisfield, Massachusetts, a rural town in the Berkshires. He attended Georgetown University in Washington, D.C., where he graduated from the prestigious McDonough School of Business with a degree in finance and accounting.

Before entering the cryptocurrency industry, Salame spent several years at Ernst & Young (EY), one of the "Big Four" accounting firms, where he worked as an auditor. This experience provided him with technical expertise in financial reporting, internal controls, and regulatory compliance—skills that would later prove valuable in his role at FTX. His background in traditional finance gave him credibility when dealing with regulators and financial institutions in the Bahamas, though prosecutors would later allege he used this expertise to facilitate illegal activities.

Career at FTX

Joining FTX

Salame joined FTX in 2019 during the early phase of the exchange's meteoric growth. At the time, FTX was positioning itself as a more sophisticated alternative to existing cryptocurrency exchanges, targeting institutional investors and professional traders. Salame's background in traditional finance and accounting made him an attractive recruit for Sam Bankman-Fried, who was assembling a team to handle FTX's expansion into new jurisdictions.

Within two years, Salame rose to become co-CEO of FTX Digital Markets, the exchange's subsidiary based in the Bahamas. This rapid ascent reflected both his capabilities and FTX's aggressive expansion strategy, which prioritized speed over traditional corporate governance. His appointment coincided with FTX's decision to relocate its headquarters from Hong Kong to the Bahamas in 2021, a move driven by the territory's favorable regulatory environment for cryptocurrency businesses.

Role at FTX Digital Markets

As co-CEO of FTX Digital Markets, Salame held significant operational and strategic responsibilities for FTX's Bahamian operations. His role included:

• Overseeing day-to-day operations of FTX's largest international subsidiary
• Managing relationships with the Securities Commission of the Bahamas and other regulatory authorities
• Serving as a primary liaison between FTX and Bahamian government officials
• Supervising compliance and licensing matters for the exchange
• Coordinating FTX's extensive real estate investments in Nassau
• Managing the company's corporate presence and reputation in the Caribbean

Salame became one of the most visible representatives of FTX in the Bahamas, regularly attending meetings with government officials and participating in public events designed to showcase FTX as a responsible corporate citizen. He was instrumental in FTX's efforts to cultivate political goodwill in the Bahamas, which included charitable donations, sponsorships, and partnerships with local institutions. This public-facing role would later prove problematic when prosecutors highlighted the disconnect between FTX's carefully managed image and its underlying fraudulent operations.

Lifestyle

Salame's compensation and access to FTX funds allowed him to live extraordinarily well, even by the standards of successful cryptocurrency executives. He maintained a luxury waterfront residence in Albany, an exclusive resort community in the Bahamas where other FTX executives also lived. The compound became known for its lavish parties and the concentration of young, newly wealthy crypto millionaires.

Beyond the Bahamas, Salame invested heavily in his home region of western Massachusetts. He purchased multiple restaurants in the Berkshires, including a popular farm-to-table establishment, as well as commercial and residential real estate throughout the area. These investments were presented as a commitment to his hometown community, though prosecutors would later allege that some were financed with misappropriated customer funds.

Salame also became one of the most significant political donors in the United States, contributing tens of millions of dollars to Republican candidates and causes—a role that would ultimately form the basis of his federal prosecution.

Political Contributions

Straw Donor Scheme

Unlike Sam Bankman-Fried, who publicly donated to Democratic causes and became a major figure in progressive politics, Salame served as FTX's primary conduit for contributions to Republican candidates and causes. This division of political giving was strategic: by splitting donations along partisan lines, FTX executives maximized their influence across both parties while avoiding the appearance that any single individual was dominating the political landscape.

Between 2020 and 2022, Salame made approximately $24 million in political contributions, making him one of the largest Republican donors in the country during the 2022 election cycle. Prosecutors later alleged that this massive giving operation violated federal campaign finance laws in multiple ways:

• Contributions were funded with customer deposits that had been misappropriated from FTX
• Salame made contributions in the names of other individuals (straw donors) to circumvent federal contribution limits
• The scheme allowed FTX executives to multiply their political influence beyond what any single donor could legally achieve
• Contributions were coordinated among FTX executives as part of a broader strategy to gain influence with lawmakers and regulators
• Some donations were concealed to hide the true source and extent of FTX's political spending

The straw donor scheme worked by having Salame make contributions in the names of FTX employees, friends, and associates who agreed to let their names be used. FTX would then reimburse these individuals, effectively allowing the company to exceed federal contribution limits that restrict how much any individual can donate to a candidate or political committee.

Key Recipients

Salame's $24 million in political contributions flowed to numerous Republican candidates and organizations, including:

• Senate and House candidates in competitive races nationwide
• National Republican Congressional Committee (NRCC) and other party committees
• Super PACs aligned with Republican leadership
• State and local candidates in Massachusetts, where Salame had business interests
• Candidates focused on cryptocurrency-friendly legislation and regulation

Notably, Salame's giving targeted candidates who sat on committees with jurisdiction over financial regulation, cryptocurrency policy, and campaign finance law—the very areas where FTX sought favorable treatment. Some recipients were specifically chosen for their ability to influence the Securities and Exchange Commission, the Commodity Futures Trading Commission, and other agencies that regulated FTX's business.

The geographic concentration of donations in Massachusetts reflected Salame's business interests in the state, where he owned restaurants and real estate. By cultivating relationships with state and local officials, Salame sought to protect these investments and expand his influence in his home region.

Girlfriend and Business Partner

Salame's romantic and business partner, Michelle Bond, became entangled in the campaign finance scheme in ways that would lead to her own federal indictment. Bond, a former Securities and Exchange Commission attorney and cryptocurrency industry lobbyist, ran as a Republican candidate for Congress in New York's 1st Congressional District in 2022.

Prosecutors alleged that Salame orchestrated approximately $400,000 in illegal contributions to Bond's campaign, using the same straw donor tactics he employed for other candidates. The scheme allegedly included:

• Direct contributions made in the names of FTX employees who were reimbursed by the company
• Inflated "consulting" payments to Bond that were disguised campaign contributions
• Coordination between Salame and Bond to structure the contributions to avoid detection
• False statements to the Federal Election Commission about the source of Bond's campaign funding

Bond's candidacy was part of FTX's broader political strategy. As a former crypto industry insider running for federal office, she represented an opportunity for FTX to gain an ally in Congress who understood cryptocurrency regulation and could advocate for the industry from within the legislative branch.

Bond lost her Republican primary in August 2022, just months before FTX's collapse. In October 2023, federal prosecutors in Manhattan indicted her on charges of conspiracy to cause unlawful campaign contributions, causing and accepting excessive campaign contributions, and causing a false statement to the FEC. She has pleaded not guilty, and her case continues separately from Salame's prosecution. The Bond case represents a rare instance of prosecutors charging both the donor and recipient in a campaign finance scheme.

The Collapse of FTX

FTX's implosion in November 2022 began with a CoinDesk article revealing the overlapping finances between FTX and Alameda Research, Sam Bankman-Fried's trading firm. Within days, customer withdrawals overwhelmed the exchange, revealing that billions in customer funds were missing. On November 11, 2022, FTX filed for bankruptcy, exposing what prosecutors would later describe as one of the largest financial frauds in American history.

Salame was in the Bahamas when the collapse occurred, watching as the empire he helped build disintegrated within a matter of days. His personal wealth, largely consisting of FTX equity and cryptocurrency held on the exchange, evaporated. The restaurants and real estate he had purchased in Massachusetts became liabilities as investigators scrutinized whether they had been acquired with misappropriated customer funds.

Unlike Gary Wang, Caroline Ellison, and Nishad Singh—who quickly retained counsel and began cooperating with federal prosecutors—Salame initially adopted a defensive legal strategy. He hired experienced white-collar defense attorneys but did not immediately offer cooperation. This decision would prove consequential: prosecutors would later emphasize his lack of cooperation as an aggravating factor at sentencing.

Criminal Prosecution

Charges

On September 7, 2023, federal prosecutors in the Southern District of New York charged Salame with two conspiracy counts:

• Conspiracy to make unlawful political contributions and defraud the Federal Election Commission (Title 18, United States Code, Section 371)
• Conspiracy to operate an unlicensed money transmitting business (Title 18, United States Code, Section 1960)

The charging decision was notable for what it excluded. Unlike Sam Bankman-Fried, who faced Wire Fraud and securities fraud charges, Salame was not charged with defrauding FTX customers or investors. Prosecutors instead focused on his role in the campaign finance scheme and FTX's operation without proper money transmitting licenses in various jurisdictions.

This narrower charging approach likely reflected the evidence available against Salame. While he was a senior executive, prosecutors may not have had direct evidence that he participated in or was aware of the misappropriation of customer funds that formed the core of the fraud charges against Bankman-Fried. The campaign finance violations, by contrast, were well-documented through Federal Election Commission records, bank transfers, and witness testimony.

Guilty Plea

On September 7, 2023, the same day charges were filed, Salame appeared in federal court in Manhattan and pleaded guilty to both conspiracy counts. In his plea allocution before Judge Lewis Kaplan, Salame admitted to:

• Making tens of millions of dollars in illegal political contributions that exceeded federal limits
• Using straw donors—including FTX employees and associates—to disguise the source and amount of contributions
• Reimbursing straw donors with company funds to circumvent contribution limits
• Operating FTX as an unlicensed money transmitting business in violation of federal and state laws
• Making false statements to financial institutions about the purpose of certain transactions

During the plea hearing, Salame acknowledged that he knew his conduct was illegal and that he had engaged in it anyway to advance FTX's business interests and his own political goals. The plea agreement included his consent to forfeit $1.5 billion in assets, though the actual forfeiture would depend on what assets could be recovered.

No Cooperation Agreement

Unlike Gary Wang, Caroline Ellison, and Nishad Singh—all of whom entered into cooperation agreements with the government—Salame pleaded guilty without agreeing to cooperate. He did not testify at Sam Bankman-Fried's trial in October-November 2023, nor did he provide substantial assistance to prosecutors in their investigation of other FTX executives or related criminal conduct.

The reasons for Salame's decision not to cooperate remain unclear. Possible explanations include:

• He may not have possessed information about the core fraud that prosecutors considered valuable enough to warrant a cooperation agreement
• His involvement in the Michelle Bond campaign may have complicated cooperation discussions, as prosecutors were simultaneously investigating her
• He may have made a strategic calculation that cooperating would not significantly reduce his sentence
• Personal or ethical considerations about testifying against former colleagues

This decision had profound consequences. Under the federal sentencing guidelines, cooperation with prosecutors is one of the most significant mitigating factors available to defendants. Cooperators can receive departures below the guideline range, while non-cooperators typically face sentences at or near the top of the applicable range. Salame's refusal to cooperate meant he would be sentenced based solely on the seriousness of his conduct, without credit for assistance to the government.

Sentencing

May 2024 Sentencing

On May 28, 2024, U.S. District Judge Lewis Kaplan—the same judge who presided over Sam Bankman-Fried's trial and sentencing—sentenced Salame to:

• 90 months (7.5 years) in federal prison
• Forfeiture of $1.5 billion in assets
• Three years of Supervised Release following imprisonment
• Restitution obligations to FTX victims, amount to be determined

The 7.5-year sentence exceeded what Salame's defense attorneys had requested (18-24 months) but fell well below the statutory maximum of five years per count (10 years total). Prosecutors had recommended a sentence of 5-7 years, arguing that Salame's campaign finance violations had undermined public confidence in elections and that his operation of an unlicensed money transmitting business had facilitated FTX's broader fraud.

Comparison to Cooperators

Salame's sentence stood in stark contrast to his former colleagues:

Defendant	Sentence	Cooperated?
Sam Bankman-Fried	25 years	No
Ryan Salame	7.5 years	No
Caroline Ellison	2 years	Yes
Gary Wang	Time served	Yes
Nishad Singh	Time served	Yes

The disparity illustrated the premium federal prosecutors and judges place on cooperation.

Judge's Remarks

During the sentencing hearing, Judge Kaplan delivered pointed remarks about the gravity of Salame's conduct. The judge emphasized that campaign finance violations represent attacks on the democratic process itself, noting that Salame's $24 million in illegal contributions had the potential to distort electoral outcomes and corrupt the legislative process.

Judge Kaplan specifically addressed Salame's lack of cooperation, stating that while defendants have no obligation to cooperate with prosecutors, those who choose not to do so cannot expect the same sentencing treatment as those who accept responsibility and assist the government. The judge noted that Caroline Ellison, Gary Wang, and Nishad Singh had provided "substantial assistance" through their testimony and cooperation, which warranted significant sentencing departures in their cases.

The judge also addressed Salame's claim that he had been misled about whether prosecutors would investigate Michelle Bond if he pleaded guilty. Judge Kaplan rejected this argument, stating that plea agreements are explicit about what they do and do not promise, and that Salame—represented by experienced counsel—could not credibly claim surprise that his girlfriend faced separate prosecution.

Finally, Judge Kaplan emphasized that the unlicensed money transmitting business charge was not merely a technical regulatory violation but represented Salame's role in facilitating FTX's operations in a manner that evaded oversight and enabled fraud.

Incarceration

FCI Cumberland

Salame is serving his sentence at Federal Correctional Institution Cumberland, a medium-security facility located in Cumberland, Maryland. The facility houses approximately 1,200 inmates and offers educational and vocational programs typical of medium-security institutions.

Salame surrendered to begin serving his sentence on October 11, 2024, after his medical issues from the dog bite incident were resolved. With his 90-month sentence and assuming he earns standard good time credits (15% reduction for good behavior under federal law), Salame is projected to be released in approximately 2031. He will then serve three years of supervised release under conditions imposed by the court.

Pre-Surrender Incident

In a bizarre twist that drew media attention, Salame suffered a serious injury just weeks before his scheduled surrender date. His German Shepherd allegedly bit off part of his finger in June 2024, requiring surgical intervention and physical therapy. Salame's attorneys filed a motion requesting a delay in his surrender date to allow time for medical treatment and rehabilitation.

The request was met with skepticism from prosecutors, who questioned the timing and severity of the injury. Federal prosecutors noted that Salame could receive medical treatment while incarcerated and argued that granting delays for such injuries would set a problematic precedent. The incident generated speculation in media coverage about whether the injury was genuinely accidental or potentially self-inflicted to delay incarceration, though no evidence supported the latter theory.

Judge Kaplan ultimately granted a brief delay to allow for initial medical treatment but rejected requests for an extended postponement. Salame surrendered to FCI Cumberland in October 2024, several months after his original surrender date but far earlier than his attorneys had requested.

Civil and Regulatory Matters

Forfeiture

As part of his plea agreement, Salame consented to forfeit approximately $1.5 billion in assets. This forfeiture represented his estimated ill-gotten gains from his criminal conduct, including:

• FTX equity and cryptocurrency holdings
• Real estate in Massachusetts and the Bahamas
• Restaurants and commercial properties
• Cash and investment accounts
• Other assets traceable to his illegal activities

However, the actual forfeiture amount depended heavily on what assets could be located, valued, and liquidated. Many of Salame's assets consisted of FTX equity that became worthless after the company's collapse, and cryptocurrency holdings that had declined dramatically in value. The restaurants and real estate in Massachusetts retained some value, but whether they would be seized and sold to satisfy the forfeiture order remained uncertain as of late 2024. The forfeiture proceedings are part of the broader effort to recover assets for distribution to FTX victims through the bankruptcy process.

FEC Investigation

In addition to the criminal prosecution, the Federal Election Commission opened its own investigation into Salame's campaign finance violations. The FEC has civil enforcement authority over campaign finance law and can impose fines, require disgorgement of illegal contributions, and refer cases for criminal prosecution.

However, the FEC's investigation was effectively superseded by the criminal case brought by the Department of Justice. Federal practice typically holds criminal prosecutions in abeyance while related civil enforcement actions proceed, or vice versa. Given the severity of Salame's criminal sentence and the $1.5 billion forfeiture order, any additional FEC civil penalties would likely be negligible by comparison. The FEC's primary focus shifted to ensuring that illegal contributions were returned to donors or disgorged to the U.S. Treasury.

Campaign Finance Clawbacks

Political campaigns and organizations that received Salame's $24 million in illegal contributions faced significant pressure to return the funds following his guilty plea. The clawback process has been complicated and politically fraught:

• Some campaigns and committees voluntarily returned contributions once Salame's illegal activity became public
• Others argued they had no legal obligation to return funds unless specifically ordered to do so
• The FTX bankruptcy estate sought to recover contributions as fraudulent transfers of customer funds
• Some recipients claimed they had already spent the money on campaign activities and lacked the resources to return it
• Political opponents of contribution recipients used the FTX scandal to attack candidates who had accepted Salame's donations

The National Republican Congressional Committee (NRCC), which received substantial sums from Salame, initially resisted returning funds but eventually agreed to cooperate with the bankruptcy estate's recovery efforts. Individual candidates faced varying degrees of public pressure, with some proactively returning contributions to avoid association with the scandal while others quietly retained the funds.

Michelle Bond Case

Michelle Bond's indictment in October 2023 represented an unusual prosecutorial decision to charge both sides of an illegal contribution scheme. Bond, who had a distinguished career as an SEC attorney and cryptocurrency industry advocate before her congressional run, faced serious federal charges stemming from her relationship with Salame.

The indictment charged Bond with:

• Conspiracy to cause and accept excessive campaign contributions (18 U.S.C. § 371)
• Causing and accepting excessive campaign contributions from Salame (52 U.S.C. § 30116)
• Causing false statements to be filed with the Federal Election Commission (18 U.S.C. § 1001)

Prosecutors alleged that Bond knowingly accepted illegal contributions from Salame, including approximately $400,000 that exceeded federal limits and was disguised through straw donors and consulting payments. The indictment also alleged that she made false statements to the FEC about the source of her campaign funding.

Bond has pleaded not guilty and mounted a vigorous defense. Her attorneys argue that she had no knowledge of any illegal scheme and that she reasonably believed the contributions and consulting payments were legitimate. The case raises novel legal questions about when a political candidate can be held criminally liable for accepting illegal contributions, particularly when the donor (Salame) concealed the true nature of the contributions.

As of late 2024, Bond's case remains pending in the Southern District of New York before Judge Lewis Kaplan. Her defense has been complicated by Salame's guilty plea and his admission that he funneled illegal contributions to her campaign, though Salame has not cooperated with prosecutors in their case against her.

Legacy

Campaign Finance System

Salame's case highlighted fundamental weaknesses in the American campaign finance system that allow wealthy individuals and corporations to evade legal restrictions on political giving. The $24 million straw donor scheme succeeded for years before being detected, raising questions about the effectiveness of existing safeguards:

• Detection Difficulties: The FEC lacks sophisticated data analytics to identify patterns suggesting straw donor arrangements. Salame's contributions appeared legitimate on their face, with individual donors making contributions within legal limits. Only the subsequent criminal investigation revealed the underlying coordination and reimbursement scheme.

• Enforcement Resource Constraints: The FEC operates with a limited budget and staff, making it difficult to investigate the millions of political contributions made each election cycle. Even when suspicious patterns are identified, the agency's bipartisan structure can lead to deadlock on enforcement actions.

• Legal Loopholes: While federal law limits direct contributions to candidates, Super PACs and other independent expenditure committees can accept unlimited funds. Salame's scheme focused on direct contributions where limits are most stringent, but the broader campaign finance landscape offers numerous ways for wealthy donors to exert influence.

• Reliance on Self-Reporting: The campaign finance system depends heavily on voluntary compliance and accurate reporting by donors and campaigns. Sophisticated schemes like Salame's can exploit this trust-based system.

The case has prompted renewed calls for campaign finance reform, though partisan divisions have prevented legislative action. Some reform advocates have pointed to Salame's prosecution as evidence that criminal enforcement, rather than new regulations, may be the most effective deterrent to illegal contributions.

Non-Cooperation Consequences

Salame's case has become a prominent example in white-collar criminal defense circles of the stark consequences defendants face when they decline to cooperate with federal prosecutors. The sentencing disparity between Salame and his cooperating co-defendants illustrates the federal system's strong incentive structure favoring cooperation:

• Caroline Ellison, who provided extensive testimony against Bankman-Fried, received 2 years despite her central role in the fraud
• Gary Wang and Nishad Singh, who also cooperated, received no prison time
• Salame, who pleaded guilty to lesser charges but did not cooperate, received 7.5 years

This disparity raises important questions about the federal cooperation system. Critics argue that it creates undue pressure on defendants to provide testimony regardless of its reliability, while proponents contend that cooperation is essential to prosecuting complex white-collar crimes where documentary evidence may be insufficient.

For defense attorneys, Salame's case reinforces conventional wisdom: absent extraordinary circumstances, defendants in federal white-collar cases who possess valuable information should seriously consider cooperation. The sentencing differential—potentially years or even decades of imprisonment—often outweighs other considerations.

However, Salame's case also demonstrates that cooperation is not always possible or advisable. Defendants who lack valuable information, face conflicts with potential cooperation (such as Salame's relationship with Michelle Bond), or have ethical objections to testifying may find that a guilty plea without cooperation is their best option despite the sentencing consequences.

See Also

• Sam Bankman-Fried
• Gary Wang
• Nishad Singh
• Caroline Ellison
• FCI Cumberland (medium-security)
• Wire Fraud

Frequently Asked Questions

Q: Who is Ryan Salame?

Ryan Salame was co-CEO of FTX Digital Markets and a senior executive at FTX who was sentenced to 7.5 years in federal prison for campaign finance violations and operating an unlicensed money transmitting business.

Q: How long is Ryan Salame's prison sentence?

Salame was sentenced to 7.5 years (90 months) in federal prison in May 2024. He is serving his sentence at FCI Cumberland in Maryland.

Q: Did Ryan Salame cooperate with prosecutors?

No. Unlike other FTX executives such as Gary Wang, Caroline Ellison, and Nishad Singh, Salame did not enter into a cooperation agreement or testify against Sam Bankman-Fried.

Q: How much did Ryan Salame donate to political campaigns?

Salame made approximately $24 million in political contributions between 2021 and 2022, primarily to Republican candidates and causes, some of which prosecutors alleged came from misappropriated funds.

Q: Why was Ryan Salame's sentence longer than other FTX executives?

Salame did not cooperate with prosecutors, while his former colleagues who received lighter sentences (or no prison time) provided extensive cooperation and testimony in the case against Sam Bankman-Fried.