Exclusive Property Transfer Confirmed for FTX Digital Markets Ex-CEO
Former FTX Digital Markets co-chief executive Ryan Salame has agreed to transfer a luxury property in the Bahamas as part of a plea agreement in his case. Salame faced criminal charges in September 2023, with his plea deal requiring him to pay $5.6 million in restitution to the debtors.
Deluxe Home Handover: Details Unveiled
A motion filed by FTX Trading Ltd and affiliated debtors with the United States Bankruptcy Court for the District of Delaware unveiled the exclusive property transfer. Salame will relinquish a $5.9 million residence he owns in the Bahamas as part of the deal.
- Salame proposes to transfer the legal title of the house to FTX Digital Markets Ltd to satisfy the restitution amount.
- Under the stipulation, upon the transfer of the legal title to FTX DM, the debt will be considered settled.
The filing affirmed, “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.”
The debtors believe that this arrangement safeguards their interests by avoiding a rushed sale of the property at a discounted rate, preserving their ability to capitalize on other Bahamian assets.
Additionally, the $306,822.09 variance between the appraised value and the restitution amount will be offset against Salame’s debt to the debtors on the promissory note.
Insight into Salame’s Financial Transactions
Further revelations from the court filing shed light on Salame’s transactions. In September 2021, Salame agreed to purchase a property for $7.2 million, with an initial 10% deposit wired from an Alameda Research account at Silvergate Bank.
- In November that year, FTX DM transferred $8.1 million from its Fidelity Bank in the Bahamas account to Salame’s real estate attorney to settle the remaining property purchase balance.
- Subsequently, in March 2022, Salame and Alameda executed a promissory note, committing him to repay the $8.1 million to the firm.
However, FTX and Alameda encountered challenges and eventually collapsed in early November 2022, prompting bankruptcy filings soon after.
Salame is facing charges related to conspiracy to make illegal political contributions, defraud the Federal Election Commission, and operate an unlicensed money-transmitting business. His sentencing is slated for May 28, 2024, while former FTX CEO Sam Bankman-Fried received a 25-year sentence in March.
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