Former FTX executive Ryan Salame made headlines recently with a new job title on LinkedIn. After District Judge Lewis A. Kaplan denied his request to delay the start of his incarceration, Salame reported to prison with a sense of humor, updating his LinkedIn profile to reflect his new position as “Inmate at FCI Cumberland.” He even listed “cleaning” and “whittling” as skills, along with lamenting the interruption of his Wordle streak.
Salame’s legal troubles began last year when he pleaded guilty to conspiracy to make unlawful political contributions and defraud the Federal Election Commission, as well as conspiracy to operate an unlicensed money-transmitting business. In May, he was sentenced to 7.5 years behind bars, but complications arose when charges were brought against the mother of his child, Michelle Bond, for alleged campaign finance violations related to her Congressional campaign.
Salame claimed he had cut a deal with the government and pleaded guilty to protect Bond from further investigation. However, the prosecution refuted this claim, calling it “demonstrably false.” Salame’s attempts to have Bond’s indictment dismissed and his own conviction overturned were met with skepticism from Judge Kaplan, who accused him of providing false testimony during his guilty plea.
The downfall of FTX, the exchange where Salame was a former co-CEO, further complicated the situation. The exchange filed for bankruptcy amid accusations of mismanagement by CEO Sam Bankman-Fried, who allegedly loaned out billions of dollars of customer deposits to Alameda Research. This led to a sharp decline in crypto prices and Bankman-Fried’s arrest by US federal authorities. In March, he was sentenced to 25 years in prison and ordered to pay $11 billion in forfeiture, with an ongoing appeal against his conviction and sentence.
The saga of Salame, Bond, and Bankman-Fried highlights the complexities of white-collar crime in the digital age. As the legal battles continue, it serves as a cautionary tale for those operating in the cryptocurrency industry. Subscribe to The Daily Hodl for more updates on this ongoing story.