Lawyers representing Ryan Salame, former co-CEO of FTX Digital Markets, have submitted a plea requesting a maximum prison sentence of 18 months. Filed on May 14 in the United States District Court for the Southern District of New York, Salame's legal team argued that, alongside the substantial restitution and forfeiture obligations already offered by the ex-FTX executive, a sentence not exceeding 18 months would be fitting. Salame pleaded guilty to conspiracy charges related to operating an unlicensed money-transmitting business and campaign finance fraud in September 2023, with Judge Lewis Kaplan scheduled to issue the sentence on May 28.

Salame's attorneys asserted in their sentencing memo on May 14 that he had no prior knowledge of the fraudulent activities within Alameda and FTX, the companies he was associated with. They emphasized that Salame himself was not involved in defrauding customers or disseminating false information about the companies' legitimacy or profitability. According to his legal team, Salame was deceived, much like everyone else, into believing the companies were lawful and financially sound.

Furthermore, the filing highlighted that Salame reported FTX's fraudulent activities to the Securities Commission of the Bahamas on November 9, 2022, just days before former FTX CEO Sam "SBF" Bankman-Fried resigned and the exchange declared bankruptcy. Bankman-Fried was subsequently extradited to the U.S. from the Bahamas and sentenced to 25 years in prison in March after being convicted of seven felony counts.

Salame's lawyers argued that an 18-month sentence was fitting for their client, considering his peripheral role in the conspiracies to which he pleaded guilty. They contended that Salame, unlike Bankman-Fried, has demonstrated genuine remorse and acceptance of responsibility for his actions, making it unlikely for him to engage in similar criminal conduct in the future.

As Salame awaits sentencing, he remains free on a $1 million bond, as per the terms of his guilty plea agreement in 2023. In addition to the prison sentence, Salame is required to pay approximately $6 million in penalties to the U.S. government and $6 million to FTX debtors. As part of the settlement, he will forfeit two properties and a business, leaving him with no remaining assets, according to his legal representatives.