Ex-FTX Co-CEO Ryan Salame to Transfer Bahamas Property in Plea Deal
Summary:
Former FTX Digital Markets co-CEO, Ryan Salame, will surrender his multimillion-dollar Bahamas property as part of his plea agreement in a criminal case. Instead of cash, Salame aims to fulfill his $5.6m restitution obligation by transferring the property to FTX Digital Markets Ltd, a move seen as beneficial by the creditors. Salame was charged with conspiracies relating to unlawful political contributions and operating an unlicensed monetary-transmission business. His sentencing is set for May 28, 2024.
Ryan Salame, ex co-CEO of FTX Digital Markets, will forfeit his expensive Bahamas estate in a plea deal relating to his criminal case. Documentation released on May 1 by the US Bankruptcy Court for the District of Delaware from FTX Trading Ltd and associated creditors show Salame has consented to give away his $5.9 million Bahamian home. His plea deal, offered due to criminal charges levied in September 2023, stated that he must provide $5.6 million in reparations to the creditors.
Salame's alternative to a cash disbursement is the proposed transference of his resident property to FTX Digital Markets Ltd. According to the filing, Salame will achieve his restitution obligations by giving a Bahamian property he owns, specifically Unit No. 3A of the Marina Residences at Albany Building 10 Condominium, to FTX DM.
Creditors insist that this course of action is in their best interest, as it helps avoid a potential hasty and underpriced selling of the residence by Salame, helping to protect the monetization of their other Bahamian assets. Property brokers in the Bahamas have reported a fall in high-end property selling volume by as much as 25% in 2023, whilst Australian property company Properstar reveals a 28% dip in apartment prices over the previous year.
Salame faced charges for illegal political contributions conspiracy, defrauding the Federal Election Commission, and conspiracy to oversee an unauthorized monetary-transmission business. The filing also disclosed an agreement in September 2021 by Salame to acquire the property for $7.2 million, with a 10% deposit transferred from a Silvergate Bank-held Alameda Research account. Further details reveal that in November 2021, FTX DM wired $8.1 million from its Bahamian Fidelity Bank account to Salame's property lawyer to settle the remaining purchase amount. However, complications arose when FTX and Alameda found themselves pushing towards bankruptcy in November 2022. Salame is set for sentencing on May 28, 2024, whereas former FTX CEO Sam Bankman-Fried was sentenced to 25 years imprisonment at the end of March.
Published At
5/3/2024 6:07:48 AM
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