Who is Ryan Salame? US Tech CEO announces new LinkedIn position: inmate

US technology executive Ryan Salame has made headlines again, this time for a tongue-in-cheek LinkedIn update. Known for his involvement in the cryptocurrency industry, especially with FTX Digital Markets, Salame’s latest announcement is not about a new business venture, but rather about his incarceration. After pleading guilty to charges related to illegal political contributions and operating an unlicensed money transfer business, the former CEO took to LinkedIn to share that he is now officially an inmate.

Ryan Salame: From Prominent Accountant to CEO of Fallen Tech

Ryan Salame initially built a respectable career in finance before venturing into the cryptocurrency space. A certified public accountant in Massachusetts, Salame earned his master’s degree in finance from Georgetown University and worked as a senior tax accountant at the renowned global accounting firm Ernst & Young. After leaving Ernst & Young in 2017, he transitioned into the world of digital assets, first as a trading analyst at Circle Internet Financial and later as head of OTC at Alameda Research.

In September 2021, Salame became CEO of FTX Digital Markets, the Bahamas unit of FTX, one of the largest cryptocurrency exchanges in the world. Under his leadership, FTX grew rapidly, becoming a major player in the global crypto market. Salame’s influence extended beyond the world of digital assets; He has become a top Republican donor, contributing more than $24 million to various political candidates and causes during the 2022 election cycle.

However, behind the scenes, things were much less stable. Salame’s rise to prominence in finance and technology would soon be overshadowed by the eventual collapse of FTX and the criminal investigations that followed.

The fall: a timeline of financial mismanagement

Salame’s problems began in late 2022 when FTX faced a “liquidity crisis.” Rising interest rates have hit the cryptocurrency sector hard, prompting investors to withdraw their funds. This liquidity crisis revealed the company’s poor financial management.

On November 8, 2021, Binance, a rival crypto exchange, considered acquiring FTX to resolve its liquidity issues. However, after conducting due diligence, Binance CEO Changpeng Zhao backed out of the deal, citing FTX’s massive financial problems. “The problems are beyond our control or ability to help,” Zhao said.

FTX filed for Chapter 11 bankruptcy three days later, disclosing assets valued at between $10 billion and $50 billion. The company’s collapse sent shockwaves throughout the industry. FTX founder Sam Bankman-Fried has resigned, leaving bankruptcy litigator John Ray III to manage the fallout.

According to El PaísRay uncovered widespread fraud within FTX, with company funds being misused for luxury expenses. The US government quickly initiated legal proceedings against Bankman-Fried for orchestrating what was described as a Ponzi scheme. Bankman-Fried’s lavish spending habits and intentional deception of investors and customers led to his conviction on fraud charges in 2023.

The Domino Effect: Ryan Salame’s Role in the FTX Collapse

Although Salame was not tried alongside Bankman-Fried, his role in the company’s demise was significant. Salame was one of the first high-ranking FTX executives to cooperate with authorities, providing more than 600,000 pages of evidence to help build the case against his former boss. However, this cooperation did not protect him from legal consequences.

In 2023, Salame was accused of using client funds to purchase luxury properties and making substantial political donations. The illegal use of these funds, totaling millions of dollars, contributed to its downfall. His wife, Michelle Bond, also received $400,000 in funds for her congressional campaign, further deepening the scandal.

The LinkedIn Ad: Satire or Coping Mechanism?

Despite the seriousness of his situation, Salame took a surprisingly carefree approach to his legal problems. His recent LinkedIn update, in which he announced his new “position” as an inmate, shows his irreverent humor. The post, which featured an image of a celebratory cupcake, said: “I’m happy to share that I’m starting a new position as an Inmate at FCI Cumberland!”

This sarcastic tone is consistent with his social media activity. Even after his conviction in May 2024, Salame continued to post daily on X (formerly Twitter), often mocking the cryptocurrency industry and its circumstances. In one post, he joked: “Are we at the point in the crypto cycle where lenders let you borrow billions in exchange for a ham sandwich or not yet?”

Industry reactions and customer consequences

While some members of the LinkedIn community found Salame’s post funny, others remain outraged by the impact of FTX’s collapse on its investors. The company’s bankruptcy left more than a million customers without access to their funds. The collapse was devastating for individuals like Lee Rees, who lost $100,000 – about half his annual income. “It’s like your boss doesn’t pay you. You can’t live, can you?” Rees said Reuters.

Since then, former FTX clients have formed support groups to navigate the complex bankruptcy process. Some, like financier Sunil Kavuri, who lost seven figures on FTX, have been targeted by fraudulent operations that falsely promise to return their funds. Since then, Kavuri has turned to X to educate others about the dangers of inappropriate investments and to warn about risks in the cryptocurrency sector.

Salame pleaded guilty to conspiracy to make illegal political contributions and operating an unlicensed money transfer business. He was fined $1.5 billion and sentenced to seven and a half years in prison, exceeding the five to seven year sentence recommended by prosecutors.