Ellison and Salame’s FTX Sentences Reduced—Reactions

 
Niharika Deshpande
Written By 
Niharika Deshpande
December 27, 2024

Caroline Ellison and Ryan Salame, who have been accused in the FTX collapse have received a reduction in their prison sentence for being cooperative with the authorities. This move by the authorities has raised questions within the community.

Caroline Ellison’s Sentence Reduction

Caroline Ellison, the former CEO of Alameda Research, was sentenced for two years in the prison but her sentence has been reduced by three months, setting her new release date to July 20, 2026. This reduction indicates that the accused was well-behaved and cooperative with the prosecutors, and apparently has provided a detailed testimony against FTX founder Sam Bankman-Fried.

FTX exec Caroline Ellison

Ryan Salame’s Sentence Reduction

Ryan Salame, Co-CEO of FTX Digital Markets, was sentenced for seven and a half years in prison as he was accused for operating an unlicensed money-transmitting business and making illegal campaign contributions. His sentence now has been reduced by an year. The original release date for Salame was April 1, 2032 but now the new release date is March 1, 2031. Salame has supposedly provided valuable documents to the prosecutors that would help them investigate the case better.

FTX exec Ryan Salame’s prison

Public Reaction

The community is upset about the reduced prison time for Ellison and Salame. According to them, the punishment do not justify the loss investors suffered because of the fraud. Some worry that this will set a bad example as this move makes it look like the wealthy executives can get away with serious crimes by cooperating with the authorities.

On-going Legal Proceedings for the FTX Collapse

While Ellison and Salame have received reduced sentences, other former FTX executives which include Nishad Sign and Gary Wang are still under scrutiny. They are also being cooperative with the authorities and are awaiting sentencing. Sam Bankman-Fried, Founder of FTX has been sentenced to 25 years in prison.

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Niharika Deshpande
Written by Niharika Deshpande

Niharika has over two years of experience as a crypto-journalist and is part of the team at CryptoNewsZ. Although she holds a Master’s in Biochemistry, she has a knack for simplifying complex blockchain concepts. With a keen eye for industry trends, she delivers breaking stories and insightful analyses of the crypto world. Her articles serve as a go-to resource for those navigating crypto gambling, offering clear and well-researched insights. She also covers the latest crypto pre-sales and emerging token launches, helping investors stay informed. ionate about the evolving blockchain space, she continues to explore its impact on various sectors. Beyond journalism, she actively engages with the crypto community, fostering discussions on decentralized innovations.