A former executive with failed crypto platform FTX has been sentenced to seven and a half years in jail for federal crimes.

The former co-CEO of FTX’s Bahamian affiliate FTX Digital Markets Ltd., Ryan Salame, was sentenced to 90 months in prison after pleading guilty to conspiracy to operate an unlicensed money-transmitting business and conspiracy to make unlawful political contributions. In addition, he was sentenced to three years of supervised release and ordered to pay more than US$6 million in forfeiture and more than US$5 million in restitution.

The sanctions stem from allegations that Salame conspired with FTX founder Sam Bankman-Fried and others at FTX and its crypto hedge fund affiliate, Alameda Research, to use FTX, Alameda and another entity to transmit investors’ funds without a licence.

“The conspirators and others at Alameda Research and FTX also made false statements to U.S. banks in order to maintain their unlawful businesses,” U.S. authorities alleged.

Additionally, Salame was accused of conspiring with Bankman-Fried and another FTX executive, Nishad Singh, to make political donations that obscured their association with Bankman-Fried.

“These donations were made to improve Bankman-Fried’s personal standing in Washington, D.C., increase FTX’s profile, and curry favour with candidates that could help pass legislation favourable to FTX, Alameda or Bankman-Fried’s personal agenda,” authorities alleged.

In total, there were over 300 unlawful contributions, representing tens of millions of dollars, which violated election rules and caused false information to be reported to federal election officials by political campaigns and political action committees.

“Ryan Salame agreed to advance the interests of FTX, Alameda Research, and his co-conspirators through an unlawful political influence campaign and through an unlicensed money-transmitting business, which helped FTX grow faster and larger by operating outside of the law,” said Damian Williams, U.S. attorney for the Southern District of New York, in a release.