Former Alameda Research CEO, Sam Trabucco, has come forward to defend FTX executive, Ryan Salame, ahead of his upcoming sentencing on May 28. Trabucco, in a character reference submitted to the court, described Salame as a multifaceted individual who should not be defined solely by his past actions.
Trabucco expressed that Salame is his closest friend and acknowledged that he has committed crimes. However, he emphasized that Salame has taken responsibility for his actions and is prepared to face the consequences. Trabucco also expressed his hope for a fair sentencing for Salame, highlighting his value as a highly sought-after employee in the cryptocurrency industry.
Salame, who pleaded guilty to conspiracy charges related to operating an unlicensed money transmitting business and making unlawful political contributions, has distanced himself from the cryptocurrency exchange involved in the scandal. His defense team argued that he had limited knowledge of the company’s fraudulent activities, which resulted in $8 billion in losses.
The unlawful political contributions charge against Salame stems from his involvement in over 300 secret donations facilitated by FTX founder, Sam Bankman-Fried. Bankman-Fried, who is currently serving a 25-year prison sentence for orchestrating the fraud scheme, used these donations to gain influence and support from pro-crypto politicians. The funds for these donations were largely sourced from FTX customers’ money, which Bankman-Fried misappropriated for personal ventures.
Prosecutors have accused Bankman-Fried of constructing a web of deceit and false promises, causing significant harm when his fraudulent activities were exposed. Salame, along with the company’s Head of Engineering, Nishad Singh, willingly participated in the straw donor scheme.
Salame’s sentencing is scheduled to take place on May 28 at Manhattan federal court, with a maximum sentence of 10 years in prison hanging over him.
