Former FTX executive Ryan Salame says he will treat prison-like ‘summer camp’

A former executive of the collapsed FTX exchange, Ryan Salame, mentioned on X that he was not worried about his upcoming prison sentence, which would start on October 11. He said that he would treat his 7.5-year sentence like summer camp.

Salame received his sentence in May after Judge Lewis Kaplan of the U.S. District Court for the Southern District of New York ordered him to serve 7.5 years. The former executive is the second person in the FTX collapse saga to receive a prison sentence, after former CEO Sam Bankman-Fried received a 25-year sentence.

Ryan was among the members of the FTX exchange who pleaded guilty to the court charges. Salame, who pleaded guilty in September last year, followed the example of Caroline Ellison, Nishad Singh, and Gary Wang. 

According to the DOJ, Salame pled guilty to “conspiracy to make unlawful political contributions and defrauding the Federal Election Commission.” He also agreed to one count of plans to run an unregistered money transfer business.

The former FTX executive will reportedly serve his time in the U.S. Federal Correctional Institution Cumberland, as his lawyers requested. The facility’s choice would ensure Salame’s proximity to home. 

FTX judge threatens Salame with sanctions

Judge Lewis Kaplan threatened to issue Salame with unspecified sanctions for lying under oath during his September 2023 plea hearing. The former FTX executive admitted to lying about the federal prosecutors not offering him something in return for the guilty plea.

According to Salame, federal prosecutors had promised not to grill or charge his partner Michelle Bond for fraud charges. He planned to withdraw his guilty plea, saying the prosecutors broke their promise per the plea deal. The prosecutors still disputed Salame’s claims in court. He notably has a child with said partner, Bond.

Judge Kaplan grilled Salame after his stunt to withdraw the guilty plea, saying that the former FTX exec lied under oath. The judge further mentioned that the judgment was based on a false statement, raising issues in the final decision.

“You are asking me to let stand a conviction and sentence that I now know is based on a false statement during the plea,”

Judge Lewis Kaplan, FTX case judge

Many have speculated whether the ex-FTX exec will incur consequences for his admission. Bond was also indicted for her fake consultancy with FTX, which allegedly funded her failed U.S. Congress candidacy in 2022.

Salame forfeits most of his wealth

Before his prison sentence, Salame has been free to travel after his release from holding at a $1 million bond. His plea deal allegedly required him to pay $6 million to the FTX debtors, $6 million to the U.S. government, and forfeiture of one business and two properties. 

A report from last year still indicated that he agreed to forfeit $1.5 billion. His lawyers alleged that sorting out the stated requirements on his plea deal would cost him all his assets.

Despite the continued indictment of former executives, FTX is not yet back on track. The collapsed exchange still has to pay its creditors and customers. The court recently approved FTX’s plans to fully repay its customers with the $16.5 billion recovered so far.