Former FTX Executives Receive Significant Cuts in Their Prison Time

Friday, 27/12/2024 | 05:45 GMT by Arnab Shome
  • Ryan Salame will be released over a year earlier, while Caroline Ellison has received a three-month reduction.
  • Sam Bankman-Fried does not have any prospective release date yet.
FTX

Ryan Salame and Caroline Ellison, two former top FTX executives now in prison, have had significant reductions in their sentences, according to the Federal Bureau of Prisons.

Reduction in Prison Time

Salame, the former co-CEO of FTX, was sentenced to seven-and-a-half years in prison for fraud charges and conspiracy to operate an unlicensed business. He began his sentence last October and will now be released on March 1, 2031, more than a year earlier than his initial release date of April 2032.

Ellison, the former CEO of FTX’s affiliate Alameda Research and one of the key witnesses in Sam Bankman-Fried's conviction, was sentenced to two years in prison but will now be released on July 20, 2026, three months earlier than her original release date.

Good Behavior, but So Fast?

Although the rules regarding early release are unclear, CNN reports that inmates can earn good conduct time to reduce their projected release dates. Qualified inmates are eligible for up to 54 days of good conduct time for each year of their sentence. Additionally, inmates can earn more time credits by participating in various prison programs while incarcerated.

Both Salame and Ellison pleaded guilty to the civil and criminal charges brought against them. While Ellison cooperated and testified against Bankman-Fried, Salame was the only former FTX executive who did not testify against his former boss. Salame also made headlines for his LinkedIn post before going to prison, where he updated his profile to include his “new position as an inmate.”

A screenshot of a LinkedIn post by Ryan Salame, former co-CEO of FTX
A screenshot of a LinkedIn post by Ryan Salame, former co-CEO of FTX

Apart from Ellison, two other key witnesses against Bankman-Fried were Gary Wang and Nishad Singh, both of whom avoided prison time due to their cooperation.

Meanwhile, Bankman-Fried, sentenced to 25 years in prison, does not yet have a release date. His lawyers have appealed the trial, questioning the judge’s impartiality.

Ryan Salame and Caroline Ellison, two former top FTX executives now in prison, have had significant reductions in their sentences, according to the Federal Bureau of Prisons.

Reduction in Prison Time

Salame, the former co-CEO of FTX, was sentenced to seven-and-a-half years in prison for fraud charges and conspiracy to operate an unlicensed business. He began his sentence last October and will now be released on March 1, 2031, more than a year earlier than his initial release date of April 2032.

Ellison, the former CEO of FTX’s affiliate Alameda Research and one of the key witnesses in Sam Bankman-Fried's conviction, was sentenced to two years in prison but will now be released on July 20, 2026, three months earlier than her original release date.

Good Behavior, but So Fast?

Although the rules regarding early release are unclear, CNN reports that inmates can earn good conduct time to reduce their projected release dates. Qualified inmates are eligible for up to 54 days of good conduct time for each year of their sentence. Additionally, inmates can earn more time credits by participating in various prison programs while incarcerated.

Both Salame and Ellison pleaded guilty to the civil and criminal charges brought against them. While Ellison cooperated and testified against Bankman-Fried, Salame was the only former FTX executive who did not testify against his former boss. Salame also made headlines for his LinkedIn post before going to prison, where he updated his profile to include his “new position as an inmate.”

A screenshot of a LinkedIn post by Ryan Salame, former co-CEO of FTX
A screenshot of a LinkedIn post by Ryan Salame, former co-CEO of FTX

Apart from Ellison, two other key witnesses against Bankman-Fried were Gary Wang and Nishad Singh, both of whom avoided prison time due to their cooperation.

Meanwhile, Bankman-Fried, sentenced to 25 years in prison, does not yet have a release date. His lawyers have appealed the trial, questioning the judge’s impartiality.

About the Author: Arnab Shome
Arnab Shome
  • 6668 Articles
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About the Author: Arnab Shome
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
  • 6668 Articles
  • 102 Followers

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