Ryan Salame, the former co-chief executive of FTX Digital Markets, has reached an agreement to transfer his multimillion-dollar property in the Bahamas as part of a plea deal in a criminal case. According to a motion filed by FTX Trading Ltd and affiliated debtors with the United States Bankruptcy Court for the District of Delaware, Salame has agreed to relinquish his $5.9 million house in the Bahamas. This decision comes after Salame pleaded guilty to criminal charges in September 2023 and was required to pay $5.6 million in restitution to the debtors. Instead of making a cash payment, Salame has proposed transferring ownership of his residence to FTX Digital Markets Ltd to satisfy the restitution amount. The filing stated, “Salame will satisfy the Restitution Amount by transferring a residence he owns in the Bahamas, Unit No. 3A in the Marina Residences at Albany Building 10 Condominium, to FTX DM.”
The debtors have argued that this arrangement is in their best interests as it prevents Salame from having to hastily sell the property at a discounted price, which could negatively impact their ability to monetize other Bahamian properties. In 2023, Bahamian realtors reported a significant decline in high-end sales volumes, reaching up to 25%. Additionally, Australian real estate firm Properstar revealed that apartment prices in the Bahamas have fallen by 28% over the past year.
Salame’s criminal charges include 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 provided details about Salame’s property purchase. In September 2021, Salame agreed to buy the property for $7.2 million, with a 10% deposit wired from an Alameda Research account at Silvergate Bank. Later that 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 entered into a promissory note with Alameda, agreeing to repay the $8.1 million. However, both FTX and Alameda experienced financial difficulties, leading to bankruptcy filings in November 2022.
Salame’s sentencing is currently scheduled for May 28, 2024. Former FTX CEO Sam Bankman-Fried was sentenced to 25 years in prison in late March.