Former FTX Digital Markets co-CEO Ryan Salame has agreed to turn over his multi-million dollar home in the Bahamas as part of a plea deal in a criminal case. This follows from documents filed on May 1 in the United States Bankruptcy Court in Delaware by FTX Trading Ltd and related creditors.
No cash payment but transfer of ownership
Salame, who pleaded guilty to criminal offenses in September 2023, has relinquished his $5.9 million home in the Bahamas. In lieu of a cash payment, he has proposed to settle his $5.6 million debt in restitution by transferring ownership to FTX Digital Markets Ltd.
The agreement is for an apartment, Unit No. 3A, in the Marina Residences of the Albany Building 10 Condominium. According to the filing, this arrangement is beneficial to the creditors because it prevents Salame from selling the property below market price, which could harm their efforts to liquidate other properties in the Bahamas.
The local real estate market in the Bahamas has recently seen a downturn, with a 25% drop in sales volumes at the high end, and a 28% price drop in apartments, according to Australian real estate company Properstar.
Conspiracy to make unauthorized political contributions
Salame has also been charged with conspiring to make unauthorized political contributions and defrauding the Federal Election Commission, as well as illegally operating a money transmission business.
The documents further reveal that Salame purchased the property in September 2021 for $7.2 million, with the down payment coming from an Alameda Research account at Silvergate Bank. In 2022, FTX and Alameda imploded, leading to bankruptcy filings in quick succession.
Salame’s sentencing is scheduled for May 28, 2024, while Sam Bankman-Fried, former CEO of FTX, recently received a 25-year prison sentence.
Source: https://newsbit.nl/ryan-salame-van-ftx-draagt-miljoenenwoning-over-in-schikking-strafzaak/
