Ryan Salame, a former executive at the now-defunct cryptocurrency exchange FTX, is set to be sentenced on May 28. This sentencing marks the first legal repercussion for a member of co-founder Sam Bankman-Fried’s inner circle following the multi-billion-dollar collapse of the exchange.

Federal prosecutors are seeking a prison sentence of five to seven years for Salame. They have highlighted the severity of his crimes, including his involvement in one of the largest campaign finance offenses in American history and operating an unlicensed money-transmitting business that exchanged more than $1 billion without proper supervision.

Salame’s defense team argues for a lighter sentence, no more than 18 months, emphasizing his cooperation with authorities and his role in exposing the fraud at FTX. His attorneys have noted that Salame was the first insider to alert Bahamian regulators to the impending crisis in late 2022.

Since pleading guilty in September, Salame has focused on personal reform. He has been raising his first child with his long-time partner Michelle Bond and has sought treatment for substance abuse. His defense team describes him as a good man misled by a criminal leader, referring to Sam Bankman-Fried.

As part of his plea deal, Salame will forfeit $6 million worth of assets, including a Massachusetts restaurant. His sentencing memo includes 28 letters from friends and family, attesting to his character. Among the supporters is former Alameda Research co-CEO Sam Trabucco.

Salame's involvement with FTX began in 2019 when he joined Alameda Research, FTX's sister hedge fund, after meeting Bankman-Fried at a blockchain conference. By 2021, he had moved to the Bahamas and taken on the role of CEO at FTX’s Bahamian subsidiary. During his tenure, Salame facilitated customer deposits through a U.S. bank account without the necessary licenses and acted as a straw donor for Bankman-Fried, funneling millions in political donations to crypto-friendly candidates ahead of the 2022 election.

Salame’s sentencing is a significant development in the ongoing fallout from FTX’s collapse. While Salame faces justice, other key figures, including Bankman-Fried, who is currently appealing his 25-year prison sentence, await their legal fates.

Ryan Salame's sentencing on May 28 will be closely watched as it sets a precedent for other members of the FTX leadership facing charges. His case underscores the broader implications of corporate governance failures and regulatory oversights in the rapidly evolving cryptocurrency sector.