To comply with his sentence, Ryan Salame, former co-CEO of FTX Digital Markets, wants to transfer a multi-million dollar villa in the Bahamas to the creditors of the bankrupt crypto company.
In this way, he hopes to accommodate the creditors and possibly avoid a severe punishment, such as that of founder and former CEO Sam Bankman-Fried.
Salame agrees to transfer house for $5.9 million
According to a document filed by FTX and affiliates in Delaware court on May 1, Salame agreed to the transfer of his $5.9 million home.
Salame pleaded guilty to criminal charges last September and is required to repay $5.6 million to creditors. Instead of advancing cash, he wants to pay that amount through his home.
“Salame will fulfill its obligations by transferring a home in the Bahamas to FTX Digital Markets Ltd. This concerns Unit No. 3A in Marina Residences at Albany Building 10 Condominium,” the document said.
The creditors think this is a good plan because Salame is not forced to sell the house quickly at a loss. That could complicate the sale of their other real estate in the Bahamas. Real estate agents on the archipelago have already reported a decline of up to 25% in luxury real estate sales in 2023.
Financial malpractice
Salame was charged with conspiracy to make unlawful political contributions and to defraud the Federal Election Commission, and conspiracy to operate an unlicensed money transmitter business.
The document also shows that Salame purchased the home in September 2021 for $7.2 million. The 10% deposit was transferred from an Alameda Research account at Silvergate Bank. In November of that same year, FTX DM paid the remainder of the purchase price, $8.1 million, to Salame’s broker through their account at Fidelity Bank in the Bahamas.
In March 2022, Salame and Alameda signed a document agreeing to repay the $8.1 million to Alameda. However, FTX and Alameda went bankrupt in early November 2022.
The verdict in the case against Salame is scheduled for May 28, 2024. Former FTX CEO Sam Bankman-Fried was sentenced to 25 years in prison in March.
Source: https://newsbit.nl/voormalig-ftx-bestuurder-moet-miljoenenvilla-op-de-bahamas-inleveren/
