Ryan Salame, the previous co-chief executive of FTX Digital Markets, has reached an agreement to transfer his valuable property in the Bahamas as part of his plea deal in a criminal case. FTX Trading Ltd and its associated debtors have filed a motion with the United States Bankruptcy Court, stating that Salame has agreed to surrender his $5.9 million house in the Bahamas. In September 2023, Salame pleaded guilty to criminal charges and his plea agreement required him to pay $5.6 million in restitution to the debtors. Instead of making a cash payment, Salame has proposed to transfer ownership of his residence to FTX Digital Markets Ltd. The motion states, “Salame will settle 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 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 negatively impact their ability to monetize other properties in the Bahamas.
Real estate agents in the Bahamas reported a 25% decrease in high-end sales volumes in 2023. Additionally, Australian real estate firm Properstar reported a 28% decline in apartment prices in the Bahamas 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 account at Silvergate Bank belonging to Alameda Research. In November of that year, FTX Digital Markets wired $8.1 million from its 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 he agreed to repay the $8.1 million to Alameda. However, FTX and Alameda experienced a collapse in early November 2022, leading to bankruptcy filings shortly after.
Salame’s sentencing is currently scheduled for May 28, 2024. Former FTX CEO Sam Bankman-Fried was sentenced to 25 years in prison at the end of March.