Former FTX Exec’s Viral Prison Post

TLDR

• Former FTX co-CEO Ryan Salame posted about starting as an “inmate” on LinkedIn
• Salame was sentenced to 7.5 years in prison for illegal political donations and operating an unlicensed money-transmitting business
• He forfeited $1.5 billion in assets but kept his Porsche 911 Turbo S
• Salame claimed he was “duped” by Sam Bankman-Fried but withdrew $5 million as FTX faltered
• His sentencing is part of the larger fallout from FTX’s collapse, including sentences for other executives

Ryan Salame, once a high-ranking executive at the now-defunct cryptocurrency exchange FTX, is set to begin a 7.5-year prison sentence for his role in the company’s downfall.

Salame, who previously served as co-CEO of FTX Digital Markets Ltd., made headlines with an unconventional LinkedIn post announcing his new “position” as an inmate at FCI Cumberland.

The post, which quickly went viral, showcased Salame’s dark humor in the face of his legal troubles.

LinkedIn users responded with a mix of ironic congratulations and jokes, with one commenter quipping, “Bro went from LinkedIn to LockedIn.”

Salame later took to Twitter to comment on the unexpected attention, noting, “Today I learned people still use LinkedIn.”

Today I learned people still use LinkedIn

— Ryan Salame (@rsalame7926) October 11, 2024

Salame’s legal woes stem from the collapse of FTX in November 2022. The cryptocurrency exchange, once valued at $32 billion, imploded amid accusations of fraud and misuse of customer funds.

Salame was charged with making illegal political donations and operating an unlicensed money-transmitting business. He pleaded guilty to these charges in a Manhattan courtroom.

As part of his sentence, Salame has forfeited $1.5 billion in assets related to his crimes at FTX.

However, he was allowed to keep his 2021 Porsche 911 Turbo S, which was deemed too low in value for government seizure. Salame is required to cover a $1,500 maintenance cost for the vehicle.

Throughout the legal proceedings, Salame maintained that he was “duped” by FTX founder Sam Bankman-Fried (SBF) into believing the company was stable.

However, prosecutors pointed out that Salame withdrew over $5 million worth of cryptocurrency just as the exchange was faltering, casting doubt on his claims of ignorance.

Salame’s sentencing is part of a broader fallout from the FTX collapse. Caroline Ellison, former CEO of FTX’s sister firm Alameda Research, received a two-year prison sentence after providing key testimony against Bankman-Fried.

SBF himself was sentenced to 25 years in prison for orchestrating what prosecutors called one of the largest financial frauds in history.

Unlike Ellison and FTX co-founder Gary Wang, Salame did not testify at Bankman-Fried’s trial. This decision likely contributed to his harsher sentence compared to some other former FTX executives.

The case has shed light on the inner workings of FTX and the actions of its top executives during the company’s final days.

Salame’s guilty plea and subsequent sentencing mark another chapter in the ongoing saga of FTX’s collapse, which has had far-reaching implications for the cryptocurrency industry and its regulation.

As Salame prepares to begin his prison term, his social media posts have drawn attention to the personal consequences faced by those involved in the FTX scandal.

While his attempt at humor has garnered mixed reactions, it underscores the dramatic fall from grace experienced by once-prominent figures in the cryptocurrency world.