From FTX CEO to prison: Ryan Salame starts a 7.5-year sentence

If you are active on LinkedIn, you have probably noticed them: posts in which people share their new career steps. Ryan Salame, a former manager at the bankrupt crypto exchange FTX, also shared a striking update on the platform: he will soon begin a stint in prison.

New ‘LinkedIn position’

“I am happy to share that I am starting a new position as an inmate at FCI Cumberland,” Salame wrote with a tongue-in-cheek wink in his post, just days before he begins serving his 7.5-year sentence. Despite the severe punishment, he manages to keep his sense of humor. The post went viral and provoked reactions ranging from sarcastic congratulations (“Well deserved”) to comments like: “Bro went from LinkedIn to LockedIn.”

Salame was once a key player at FTX, but now he is one of many executives who will spend years behind bars as a result of the company’s scandal. The problems for Salame started when FTX, a crypto exchange valued at $32 billion at its peak, imploded in November 2022. The company collapsed after allegations of fraud and the misuse of customer funds.

Legal issues and notable details

During his trial, Salame was charged with illegal political donations and operating an unlicensed money transfer business. He pleaded guilty and was ultimately sentenced to 7.5 years in prison. A striking detail: despite his heavy sentence, he is allowed to keep his 2021 Porsche 911 Turbo S. The vehicle turned out not to be valuable enough to seize, in contrast to the $1.5 billion in assets he had to give up due to his involvement with FTX.

The aftermath of the FTX scandal

Salame has always maintained that he was misled by FTX founder Sam Bankman-Fried. However, prosecutors allege that Salame withdrew millions of dollars in cryptocurrency just before FTX’s demise. Unlike others involved, Salame refused to testify against Bankman-Fried, which may have contributed to his relatively harsh sentence.

The fall of FTX continues to leave deep marks on the crypto world. In addition to Salame, other prominent figures have also been punished. Caroline Ellison, former CEO of Alameda Research, did testify against Bankman-Fried and received a two-year sentence. Bankman-Fried himself faces a prison sentence of 25 years.