Ryan Salame, the former co-chief executive of FTX Digital Markets, has reached an agreement to transfer his luxurious property in the Bahamas as part of his plea deal in a criminal case. The motion, filed by FTX Trading Ltd and affiliated debtors with the United States Bankruptcy Court for the District of Delaware on May 1, states that Salame has agreed to surrender his $5.9 million house in the Bahamas.
Salame pleaded guilty to criminal charges in September 2023, and as part of his plea agreement, he was ordered to pay $5.6 million in restitution to the debtors. Instead of making a cash payment, Salame has proposed to fulfill the restitution by transferring ownership of his residence to FTX Digital Markets Ltd.
“The Restitution Amount will be satisfied by the transfer of a residence owned by Salame in the Bahamas, specifically Unit No. 3A in the Marina Residences at Albany Building 10 Condominium, to FTX DM,” according to the filing.
The debtors argue that this arrangement is in their best interest as it prevents Salame from having to sell the property quickly at a discounted price, which could adversely affect their ability to monetize other properties in the Bahamas. Reports from Bahamian realtors in 2023 indicated a decline of up to 25% in high-end property sales volumes, while Australian real estate firm Properstar reported a 28% drop in apartment prices over the past year.
Salame was charged with conspiracy to make unlawful political contributions and defraud the Federal Election Commission, as well as conspiracy to operate an unlicensed money-transmitting business.
The filing also revealed that Salame purchased the property in September 2021 for $7.2 million, with a 10% deposit wired from an Alameda Research account at Silvergate Bank. In November of the same year, FTX DM transferred $8.1 million from its bank account at Fidelity Bank in the Bahamas to Salame’s real estate attorney to cover the remaining balance of the purchase price.
In March 2022, Salame and Alameda entered into a promissory note, in which Salame agreed to repay the $8.1 million to Alameda. However, both FTX and Alameda collapsed in early November 2022, leading to bankruptcy filings shortly after.
Salame is currently scheduled to be sentenced on May 28, 2024. Former FTX CEO Sam Bankman-Fried was sentenced to 25 years in prison in late March.