Former FTX Executive Ryan Salame Forfeits $5.9M Bahamas House to Settle Criminal Charges
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On May 1, Ryan Salame, the former co-chief executive of FTX Digital Markets, an affiliate of the bankrupt exchange FTX, agreed to forfeit his $5.9 million house in the Bahamas to FTX Digital Markets. This is a part of Salame’s plea agreement in a criminal lawsuit against him.
Ryan Salame Settlement Does Not Include Cash Payment
In a motion filed with the United States Bankruptcy Court for the District of Delaware, Ryan Salame faces charges of conspiracy to make unlawful political contributions, defrauding the Federal Election Commission, and conspiracy to operate an unlicensed money-transmitting business.
The erstwhile executive opted against a cash settlement and instead agreed to forfeit his $5.9 million Bahamas house as restitution to the debtors.
FTX Settles with Ryan Salame by exchanging a property in the Bahamas.
His settlement under his plea was for $5.6mm and his settlement to achieve that is by giving up a property in the Albany in the Bahamas worth $5.9mm (was paid for previously with a loan from FTX). pic.twitter.com/80eexcsEvW
— Mr. Purple 🛡️ (@MrPurple_DJ) May 1, 2024
The debtors argued that this decision was in their best interests as it prevented Salame from having to sell the residence hastily at a reduced price, which could adversely affect their ability to profit from other properties in the Bahamas.
The US Bankruptcy Court stated,
“Following constructive, arm’s-length negotiations, Salame and the Debtors have agreed that in lieu of Salame paying the Restitution Amount to the Debtors in cash, 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 (the “Residence”), to FTX DM, acting by the JOLs, as nominee for the Debtors. As discussed below, the Residence has recently been appraised at $5,900,000, which exceeds the Restitution Amount.”
Meanwhile, Salame is currently free on a $1 million bond, having pleaded guilty in September 2023 to violating campaign finance laws and running an unlicensed money-transmitting business.
Ryan Salame’s Sentencing Scheduled for May 28
The filed motion highlighted that Ryan Salame purchased the property in September 2021 for $7.2 million, with the 10% deposit wired from an Alameda Research account at Silvergate Bank.
In November of the same year, FTX Digital Markets transferred $8.1 million from its bank account at Fidelity Bank in the Bahamas to Salame’s real estate attorney to settle the balance of the purchase price. In March 2022, Salame and Alameda executed a “promissory note” in which he committed to repaying the $8.1 million to Alameda.
However, FTX and Alameda collapsed in early November 2022, as they filed for bankruptcy shortly after.
Salame is scheduled for sentencing on May 28, 2024. Recall that former FTX CEO Sam Bankman-Fried (SBF) was sentenced to 25 years in prison on March 28 by Judge Lewis Kaplan of the United States District Court for the Southern District of New York.
Historic day today in NYC at @SBF_FTX’s sentencing hearing with the @DuchessOfDeFi. It’s a big day for crypto and the closure of one of my many arcs.
For the record, I take no joy in watching a man sent to prison possibly for most of his remaining life. pic.twitter.com/t5goCnf76n
— Ben Armstrong aka BitBoy Crypto (@BenArmstrongsX) March 28, 2024
SBF was the first person associated with FTX and Alameda Research to receive a prison sentence following the exchange’s collapse in 2022. Observers of the case believe that Salame may also receive a prison sentence, although it is expected to be shorter than SBF’s.
It should be noted that the Securities and Exchange Commission (SEC) has been on the trail of all FTX executives and beneficiaries of SBF that led to FTX’s collapse, including his parents, who had requested to dismiss a lawsuit against them.
