U.S. Prosecutors Call for Strict Sentence for Ex-FTX Executive over Crypto Exchange Collapse
Summary:
U.S. attorneys are pushing for a five to seven-year prison term for Ryan Salame, ex-FTX executive, for offenses leading to the FTX crypto exchange's collapse. Federal prosecutors demand that Salame, who pleaded guilty to misusing investors' funds, deserves a strict sentence. FTX co-founder “SBF” Bankman-Fried has been sentenced to 25 years in prison. Salame's sentencing is due on May 28. Other individuals involved in the FTX fraud, including Caroline Ellison, Nishad Singh, and Gary Wang, are yet to be sentenced. Amidst these, U.S. lawmakers support a bill to clarify the roles of U.S. financial regulators with regards to digital assets.
US attorneys are seeking a prison term of five to seven years for Ryan Salame, the former FTX operative and supposed aide to FTX co-founder, Sam “SBF” Bankman-Fried. His offenses were instrumental in the eventual downfall of the FTX cryptocurrency platform. Federal attorneys have demanded a harsh sentence for Salame, having entered a guilty plea for significant illicit activities, specifically linked to the misappropriation of funds from FTX's investors. According to the court documents reviewed by Bloomberg, the prosecutors are advocating for a punishment commensurate with his crime's magnitude, contrary to Salame’s defense attorneys' standpoint that he should serve only 18 months at the maximum.
“The enormity of the campaign finance crime is almost unprecedented in US history, as the under-supervised money-transferring venture exchanged over $1 billion.” stated the prosecutors. Salame's sentencing for aiding SBF in draining $10 billion from user funds is tentatively scheduled for May 28th. Prosecutors add that a significant incarceration period would send a strong message of deterrence to the defendant and others with similar intent and promote respect for the law.
The District Court for Southern New York sentenced Sam Bankman-Fried, aka SBF, to 25 years of imprisonment following his conviction on seven felony counts in April. Salame, now due for sentencing, is SBF's first accomplice. Salame was initially employed by Alameda Research in Hong Kong in 2019 before he advanced up the corporate echelons to become FTX Digital Markets' CEO, the FTX arm based in the Bahamas.
Other notable individuals involved in the FTX fraud - Caroline Ellison, Nishad Singh and Gary Wang - are awaiting their sentences. Amid these events, SBF continues to claim his innocence even as he adjusts to prison life.
Several American legislators are rallying behind a bill designed to demarcate the purviews of the nation's financial regulators concerning digital assets to obstruct the recurrence of an event like the downfall of FTX. This is according to Wiley Nickel, a representative from North Carolina.
Rep. Wiley Nickel is urging his fellow legislators to back the FIT21 Act (Financial Innovation and Technology for the 21st Century Act), which aims to delineate the regulatory authorities of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission when it comes to cryptocurrency. This comes after the surfacing of a docuseries on Amazon Prime that narrates the collapse of FTX, supported partly by a $2,500 contribution from his mother.
Published At
5/22/2024 10:27:33 AM
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