Cryptocurrencies

Attorneys representing Ryan Salama have requested an injunction against the former CEO

The lawyers representing the interests of Ryan Salama demanded that the former executive director of FTX Digital Markets be sentenced to no more than 18 months in prison.

On May 14 in the US District Court for the Southern District of New York, Salama’s legal team said that in addition to the former FTX executive’s “substantial restitution and forfeiture obligations,” there is a prison sentence of no more than 18 months; He was “adequate” in prison. Salame pleaded guilty in September 2023 to conspiracy to operate an unlicensed money-lending company and engaging in campaign finance fraud, and is scheduled to be sentenced by Judge Lewis Kaplan on May 28.

“(Salaman) had absolutely no knowledge that the four individuals at Alameda Center and FTX were conspiring to lie and steal from their clients,” his attorneys argued in a May 14 sentencing memorandum. “Ryan did not steal from anyone. He did not lie to customers. He, like everyone else, was duped into believing that the companies were legitimate, solvent and highly profitable.

The deposit added:

“As Carolyn Ellison testified at the Bankman-Fried trial, even as the FTX stock market was collapsing on November 6, 2022, she and Bankman-Fried conspired to keep Ryan in the dark about their fraud, misleading him just as they had to the rest. the world the world.”

Source: Court Listener

Salama reported FTX’s fraudulent activities to the Bahamas Securities Commission on November 9, 2022, just two days before former FTX CEO Sam “SBF” Bankman-Fried resigned and the exchange filed for bankruptcy. Bankman-Fried was later extradited from the Bahamas to the United States and convicted of seven felonies. in March, the judge sentenced him to 25 years in prison.

According to Salama’s lawyer, the 18-month sentence was appropriate for the former FTX executive because he was “at the lowest level of the conspiracies he admitted to committing” and was unlikely to commit such crimes. Unlike the Bankman-Fried case, which appeared to serve as a deterrent to individuals in the cryptocurrency space, Salama “genuinely accepted responsibility” for his actions.

Related to: FTX victims describe ‘irreparable damage’ ahead of Sam Bankman-Fried sentencing

The former executive is likely the second figure associated with FTX and Alameda Research to be convicted after Bankman-Fried. Former Alameda CEO Carolyn Ellison, FTX co-founder Gary Wang and former FTX director of engineering Nishad Singh pleaded guilty to the charges and testified at the SBF criminal trial, but it was unclear at press time whether they were set to face time. spend in prison. .

After pleading guilty in 2023, Salama remained free on $1 million bail. As part of his plea deal with prosecutors, he must pay nearly $6 million in penalties to the U.S. government, $6 million to FTX’s creditors and surrender two properties and a company. His lawyers said this would leave him with “no remaining assets”.

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