FTX crypto scandal: Why 2 executives are getting early release
What's the story
Ryan Salame and Caroline Ellison, former executives of the now-defunct cryptocurrency trading platform FTX, have had their prison sentences reduced. The duo was convicted for their role in a high-profile cryptocurrency fraud scheme. Salame, who pleaded guilty to criminal fraud charges in September 2023, was initially sentenced to seven-and-a-half years in federal prison. However, his release date has been moved up by over a year to March 1, 2031.
Sentence reduction
Ellison's sentence also shortened
Ellison, the former CEO of FTX's hedge fund division Alameda Research and ex-girlfriend of Sam Bankman-Fried, also had her prison term reduced. After pleading guilty to seven federal counts of fraud and conspiracy, she was sentenced to two years in prison. Her release date has now been moved up by three months to July 20, 2026. The Federal Bureau of Prisons is yet to comment on the revised release dates.
Undisclosed information
Bankman-Fried's release date remains undisclosed
Bankman-Fried, the mastermind of the cryptocurrency fraud and former boss of Salame and Ellison, was sentenced to 25 years in prison. However, his release date has not been revealed on the prisons' website. The Federal Bureau of Prisons has previously said it does not comment on individual inmates' conditions but said good conduct time can be earned by inmates, which is factored into their projected release dates.
Company collapse
FTX's downfall and its impact
FTX, a once-prominent crypto start-up that allowed trading of digital assets, collapsed in November 2022. The downfall was sparked by customers pulling out their funds amid rumors of unusually close ties between FTX and its founder's crypto hedge fund, Alameda Research. Despite having several celebrity endorsers and being seen as a gold standard for safety and security, the company couldn't survive this financial blow.