Author: Turner Wright, CoinTelegraph; Translator: Tao Zhu, Golden Finance
It’s been almost two years since the collapse of cryptocurrency exchange FTX and trading firm Alameda Research, leading to market uncertainty, regulatory crackdowns, and criminal charges against those involved.
Former FTX CEO Sam “SBF” Bankman-Fried, the head of the exchange and the alleged manipulator behind Alameda, is one of the first executives to face jail time. However, he is the only one of the five individuals indicted in U.S. federal court to plead not guilty and have his case heard by a jury in a high-profile trial.
As of the time of publication, Bankman-Fried could be incarcerated in a cell at the Brooklyn Metropolitan Detention Center, facing 25 years in prison.
A federal judge issued his ruling on March 28, but SBF’s legal team has filed a notice of appeal of the conviction and sentence. He is expected to remain in New York for the legal proceedings.
Ryan Salame
As the FTX executive who alerted Bahamian regulators to potential fraud at the cryptocurrency exchange, Ryan Salame and his legal troubles are arguably the most high-profile, second only to Bankman-Fried’s.
Unlike others indicted for their roles at FTX and Alameda, Salame did not testify at SBF’s 2023 criminal trial, instead pleading guilty to conspiracy to operate an unlicensed money transmitting business and engaging in campaign finance fraud. In May, Judge Lewis Kaplan sentenced the former FTX Digital Markets co-CEO to 90 months in prison.
Unlike other FTX executives, Salame began posting regularly on social media after being sentenced, often making accusations against his former colleagues — but without providing evidence. He was initially scheduled to report to prison on August 29. After authorities charged his partner, Michelle Bond, with violating campaign finance laws, Salame petitioned a judge to vacate the plea agreement he had reached with prosecutors.
As of the time of publication, Salame is expected to report to prison on October 13. If Judge Kaplan accepts his request to vacate his guilty plea, he could face a criminal trial.
Gary Wang and Nishad Singh
FTX co-founder Gary Wang was one of the first individuals indicted to plead guilty to wire fraud, securities fraud, and commodities fraud in December 2022. Former FTX director of engineering Nishad Singh followed in February 2023, pleading guilty to similar charges.
Both former executives testified at SBF’s trial about the misuse of user funds between FTX and Alameda at the direction of Bankman-Fried. Many legal experts have speculated that Wang and Singh may receive reduced sentences due to their cooperation with authorities.
Barring legal battles over Salame’s motion, Singh’s sentencing hearing is scheduled for Oct. 30. Wang’s sentencing hearing is scheduled for Nov. 20.
Caroline Ellison
The former CEO of Alameda Research is perhaps one of the most secretive individuals to emerge from the FTX fiasco. Like Singh and Wang, Caroline Ellison pleaded guilty to fraud charges in 2022 following the collapse of the cryptocurrency exchange.
However, on the eve of Bankman-Fried’s trial, prosecutors moved to revoke his bail, in part because he allegedly intimidated Ellison by sharing some of her private diaries with The New York Times. Judge Kaplan revoked SBF’s bail in August 2023, the last time the former FTX CEO spent time as a free man.
Some online sleuths have tried to locate Ellison, but it's unclear where she might be awaiting sentencing or what she's doing in the meantime. As of Aug. 29, no sentencing hearing had been scheduled for the former Alameda CEO, who could face several years in prison.
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