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You are here: Home/News/ Former FTX Executive Faces 5 to 7 Years in Prison, Prosecutors Demand
Ryan Salame, a former high-ranking official at collapsed cryptocurrency exchange FTX, finds himself at a sentencing crossroads. Prosecutors are pushing for a stiff 5-to-7-year prison term, while Salame’s defense argues for leniency, suggesting no more than 18 months behind bars. This stark contrast sets the stage for a critical decision in the ongoing fallout from the multibillion-dollar FTX collapse.
On May 20, 2024, federal prosecutors in Manhattan filed a sentencing memo outlining their case for a lengthy sentence. Salame, 30, pleaded guilty in September 2023 to charges stemming from his role in the FTX fiasco. Prosecutors argue that his crimes, including unlicensed money transmitting and illegal campaign finance contributions, were “serious” and warrant a significant punishment.
The stakes are high. Salame is the first of FTX co-founder Sam Bankman-Fried’s inner circle to face sentencing. Bankman-Fried received a hefty 25-year prison sentence in March 2024, a decision he plans to appeal. Meanwhile, Caroline Ellison, Nishad Singh, and Gary Wang – other high-profile figures from FTX – await their sentencing dates.
Salame’s defense team paints a different picture. They acknowledge his crimes but emphasize his cooperation with the authorities. According to their court filing, Salame was the first FTX executive to alert Bahamian authorities about potential fraud in late 2022. This cooperation, they argue, demonstrates a willingness to take responsibility and assist in dismantling the fraudulent scheme.
Defense also highlights Salame’s personal transformation since pleading guilty. They point to raising his first child, seeking substance abuse treatment, and his overall positive contributions before his involvement with FTX.
The charges against Salame center around his actions at FTX’s Bahamian subsidiary. Prosecutors allege he let the company accept customer deposits through a US bank account without a proper license. This exposed customer funds to significant risk.
Additionally, Salame is accused of acting as a straw donor for Bankman-Fried. He allegedly funneled millions of dollars to political campaigns deemed “crypto-friendly” in the lead-up to the 2022 elections. This act raises concerns about the potential influence of cryptocurrency on the political landscape.
The fallout from the FTX debacle has sparked wider interest in increasing regulations within the cryptocurrency industry. In light of this, lawmakers in the U.S. are arguing for the implementation of acts like the Financial Innovation and Technology for the 21st Century (FIT21) Act. This law, received by Representative Wiley Nickel from North Carolina, would clear up what jurisdiction the controlling agencies, mainly the SEC and the CFTC, have in the crypto domain, which could prevent this sort of disaster from happening in the future.
The enigma surrounding Salame’s forthcoming verdict persists through and beyond the ongoing legal process. The prosecution claims that Salame is a shrewd member of a massive enterprise, while Salame himself paints a picture of a deceived follower by a domineering leader. Ultimately, the judge’s decision will determine whether Salame is viewed as deserving of a severe punishment or as someone capable of rehabilitation and reintegration into society.
In a nutshell: Fraudsters are repeatedly refining their how one can trick doable victims into paying up. Essentially the most as much as the moment scam circulating is a variation of sextortion, the attach scammers build an image of the goal’s dwelling to their threats. But don’t be fooled, the Digital Frontier Foundation warns – scammers are merely making basically the most of Google Boulevard Test.
The plan is a variation of sextortion, or sexual blackmail. Nonetheless, in this case, there might be rarely any incriminating photo within the scammer’s possession, despite their claims.
Amassed, the would-be sufferer might well per chance with out complications maintain such a photograph exists on story of the threatening electronic mail entails their plump name and an image of their dwelling. The scammers seemingly employ publicly on hand info or info from a breach to amass intel on their targets. “Here’s a form of on-line phishing that is focusing on of us world wide and preying on digital-age fears,” the EFF mentioned.
Like many electronic mail scams, the messages are sent in bulk, hoping that a puny share of recipients will respond. They’re often riddled with sad grammar and spelling errors. Moreover including a photograph of the sufferer’s dwelling – seemingly sourced from Google Boulevard Test or an actual property internet page – the emails are furthermore personalized, as demonstrated in a sample published by the EFF.
[Name],
I know that calling [Phone Number] or visiting [your address] would be a useful manner to contact you need to you do now not act. Don’t even strive to catch some distance flung from this. You would fair don’t enjoy any belief what I will in [Your City].
They’re also worded vaguely ample that someone might well maintain the sender with out a doubt does enjoy embarrassing shriek about them.
You catch no longer know me but I know you thoroughly and appropriate now, you are questioning how, appropriate? Well, you had been treading on thin ice with your browsing habits, scrolling by those movies and clicking on hyperlinks, stumbling upon some no longer-so-stable internet sites.
They order how they got the suggestions the usage of the correct amount of tech jargon to persuade the moderate person that it with out a doubt did happen.
I positioned a Malware on a porn internet page & you visited it to peek (you catch my circulation). Whereas you were watching those movies, your smartphone started working as a RDP (Some distance away Retain an eye on) which supplied me complete protect watch over over your tool. I’m able to peek at every little thing in your order, flick in your camera and mic, and which that you would possibly well per chance per chance no longer even suspect a thing. Oh, and I enjoy got catch admission to to all of your emails, contacts, and social media accounts too.
Honest appropriate to build of an extortionist, they construct optimistic what’s going to happen must you do now not catch what they mutter.
Your video will catch sent to all of your contacts. The video was as soon as lit, and I’m able to no longer even fathom the humiliation you will endure when your colleagues, company, and fam strive it out. But hiya, that’s lifestyles, ain’t it? Don’t be playing the sufferer here.
When they’ve played in your emotions, the guarantees apply.
Your secret remains inner most. I will fracture all of the suggestions and proof whereas you reach by with the price.
And, obviously, price is within the build of a cryptocurrency.
That that you would possibly well transfer the price via Bitcoin handiest.
The amount is hefty ample to be believable but puny ample to be cheap to many.
Required Amount: $1950
In case you receive one among these emails, which that you would possibly well per chance also be tempted to distress – but don’t, the EFF advises. Most critically, catch no longer pay the ransom, as the scammer is bluffing. “In case you catch pay, then the scammers might well furthermore employ that as a rigidity display proceed to blackmail you, vivid that you are susceptible,” it says. The supreme manner is rarely any longer to respond to in any respect.
There are a total lot of precautions all and sundry might well fair aloof rob to guard in opposition to this scam and assorted forms of on-line threats. Utilizing a password supervisor helps protect in opposition to former or progressively old passwords. Moreover, enable two-component authentication at any time when conceivable for added security on on-line accounts. Since camera hijacking is furthermore a probability, it be vivid to quilt your pc’s camera. Whereas camera covers are on hand on-line, a straightforward share of electrical tape works proper as well.
The EFF furthermore highlights what it believes to be the root of the salvage 22 situation: info brokers and firms are allowed to amass and store sizable quantities of inner most info about consumers. “Inevitably this info gets breached and makes its manner into prison markets the attach it is miles bought and traded and old for scams adore this one,” the EFF well-known.
The Tennessee Bureau of Investigation has issued an Amber Alert for 2-month-extinct toddler, at the demand of the Murfreesboro Police Department.
Per the TBI, Truth Claybrooks might maybe well be ready to be in in “impending hazard.”
Truth reportedly has a clinical condition requiring treatment and is believed to be along with his 17-year-extinct mom, Jayla Claybrooks, and his 16-year-extinct aunt, Jone Claybrooks.
Jayla is described as 5 feet, 1 mosey noteworthy, weighing 101 kilos, while Jone is 5 feet noteworthy and weighs 97 kilos. Both like brown eyes and sad hair, according to the TBI.
Police reported the pair ran some distance from residence on October 4.
Truth has a clinical condition that requires treatment. He’s believed to be along with his 17 y/o mom Jayla Claybrooks and 16 y/o aunt Jone Claybrooks, who ran some distance from residence Oct 4th.