Ex-Alameda Co-CEO Trabucco Advocates for Leniency in Salame's Criminal Case
Summary:
Former Alameda Research co-CEO, Sam Trabucco, has pleaded for leniency in the sentencing of ex-FTX Digital Markets co-CEO, Ryan Salame. Giving a character reference in court, Trabucco described Salame as his best friend and endorsed a fair punishment for his role in FTX's misconduct. Salame had previously admitted to conspiracy connected to unlicensed money transmission and campaign finance fraud. Trabucco began at Alameda as a trader in 2019, ascending to co-CEO by 2021, but unlike many of his colleagues, has not faced criminal charges. Salame's sentencing is set for May 28, overseen by Judge Lewis Kaplan.
Sam Trabucco, the previous co-CEO of Alameda Research, recently vouched for Ryan Salame, former co-CEO of FTX Digital Markets, in a written recommendation ahead of Salame’s sentencing in the Southern District of New York's U.S. District Court. Trabucco, who exited Alameda Research prior to FTX's bankruptcy and subsequent charges against several key executives, called for Salame's punishment to reflect the scope of his involvement in misusing FTX users' funds. Trabucco presented his plea on the grounds of his personal friendship with Salame and shared experiences in the crypto industry, including teaming with former FTX CEO Sam “SBF” Bankman-Fried.
In the fall of 2023, Salame admitted guilt in a scheme to run an unauthorized cash transmission business and in election finance misdemeanours tied to financial contributions to his romantic partner, Michelle Bond’s political bid. Trabucco expressed concern that incarceration could affect Salame's bond with his family, as he and Bond are parents to a son now. Trabucco conveyed Salame's awareness of the need for consequences but requested fairness.
Trabucco's tenure at Alameda started in 2019 where he earned his way from trader to co-CEO, sharing the position with Caroline Ellison in 2021 before stepping down the following year. Similarly to many Alameda and FTX leaders, his presence on social platforms has been minimal post the firm's bankruptcy. Trabucco, unlike Salame, FTX co-founder Gary Wang, former FTX engineering director Nishad Singh and Ellison, he has so far avoided any criminal indictments by US lawmakers. Of all the accused, only Bankman-Fried declined a guilty plea and opted for a trial. As of now, it remains uncertain if anyone besides SBF will be penalized with jail time.
Salame’s counsel proposed a maximum term of 18 months in prison on May 14. As of now, there has been no counter recommendation from the prosecution. Judge Lewis Kaplan, who was also involved in SBF’s case, will officiate Salame's sentencing on May 28.
Prior to the bankruptcy declaration of FTX and Bankman-Fried's resignation, Salame disclosed the exchange's deceitful practices to the Bahamas' regulatory body, the Securities Commission. These revelations led to the extradition, traceback and eventual conviction of Bankman-Fried on seven counts of felony in the US. Bankman-Fried received a 25-year prison sentence from Judge Kaplan in March and an appeal against the sentence has been filed by his attorneys.
Published At
5/16/2024 7:15:44 PM
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