Ryan Salame, former co-chief executive of FTX Digital Markets, has agreed to transfer his multimillion-dollar property in the Bahamas as part of a plea agreement in a criminal case.
According to a motion filed with the United States Bankruptcy Court for the District of Delaware on May 1 by FTX Trading Ltd and affiliated debtors, Salame pleaded guilty to criminal charges in September 2023. His plea agreement mandates a $5.6 million restitution payment to the debtors.
Restitution Payment Proposal
Instead of a cash payment, Salame proposes to fulfill the restitution by transferring ownership of a $5.9 million house he owns in the Bahamas to FTX Digital Markets Ltd.
The debtors argue that this arrangement is beneficial as it prevents Salame from selling the property hastily at a reduced price, which could negatively impact their ability to capitalize on other Bahamian properties.
Reports from Bahamian realtors in 2023 indicated a decline in high-end property sales volumes by up to 25%. Additionally, Australian real estate firm Properstar noted a 28% decrease in apartment prices over the previous 12 months.
Background of Property Purchase
Salame acquired the property in September 2021 for $7.2 million, with a 10% deposit wired from an Alameda Research account at Silvergate Bank. FTX DM later transferred $8.1 million from its account at Fidelity Bank in the Bahamas to Salame’s real estate attorney to complete the purchase.
In March 2022, Salame entered a promissory note with Alameda to repay the $8.1 million. However, both FTX and Alameda faced financial difficulties in November 2022, leading to bankruptcy filings.
Salame’s sentencing is scheduled for May 28, 2024. Former FTX CEO Sam Bankman-Fried received a 25-year prison sentence in late March.
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