In a recent development, former FTX executive Ryan Salame faces a potential prison sentence of five to seven years due to his involvement in the crypto exchange's multibillion-dollar collapse. Federal prosecutors have emphasized the severity of Salame's offenses, which include one of the largest campaign finance offenses in U.S history and the exchange of over $1 billion without proper supervision.

Salame's defense team, however, argues for a lighter sentence of no more than 18 months, citing his role in exposing the fraud and his cooperation with authorities. Salame was reportedly the first FTX insider to alert regulators to the impending crisis.

As part of his plea deal, Salame will forfeit $6 million worth of assets. His sentencing is scheduled for May 28, making him the first member of FTX co-founder Sam Bankman-Fried’s inner circle to face justice for his role in the exchange's downfall. Bankman-Fried himself is currently appealing a 25-year prison sentence.

During his tenure at FTX, Salame facilitated customer deposits through a U.S. bank account without the necessary licenses and served as a straw donor for Bankman-Fried, channeling millions in political donations to crypto-friendly candidates.