Former FTX Digital Markets co-CEO Ryan Salame has agreed to relinquish millions of dollars' worth of property in the Bahamas as part of a plea deal in his criminal case, according to a motion filed on May 1 in the U.S. Bankruptcy Court for the District of Delaware by FTX Trading Ltd and its associated debtors. Salame's agreement entails surrendering a $5.9 million home he owns in the Bahamas.
Salame pleaded guilty to criminal charges in September 2023, and under the terms of his plea agreement, he was obligated to pay $5.6 million in restitution to his debtors. Instead of fulfilling this obligation with a cash payment, Salame has proposed transferring ownership of his Bahamian residence to FTX Digital Markets Ltd to settle the compensation claim.
The motion specifies that Salame will transfer the property, identified as Albany Apartments 10 Oceanfront Residences Unit 3A, to FTX DM to meet the compensation amount. The debtors assert that this arrangement is beneficial as it prevents Salame from hastily selling the property at a reduced price, which could have negative repercussions on their ability to leverage other Bahamian properties.
Real estate agents in the Bahamas have reported a notable decline in sales of high-end properties, with transactions decreasing by as much as 25% in 2023. Additionally, Australian property company Properstar has observed a 28% drop in apartment prices over the past year.
Salame faced charges including conspiracy to make illegal political contributions and defraud the Federal Election Commission, as well as conspiracy to operate an unlicensed money transmission business. Documents indicate that Salame entered into an agreement to purchase the property for $7.2 million in September 2021, with a 10% deposit transferred from an Alameda Research account at Silvergate Bank.
In November of the same year, FTX DM transferred $8.1 million from its bank account at Fidelity Bank in the Bahamas to Salame's real estate attorney to settle the outstanding balance of the purchase price. Subsequently, in March 2022, Salame and Alameda executed a promissory note in which he committed to repaying Alameda $8.1 million. However, both FTX and Alameda experienced collapse in early November 2022 and subsequently filed for bankruptcy.
Salame's sentencing is presently scheduled for May 28, 2024. Former FTX CEO Sam Bankman-Fried received a 25-year prison sentence in late March.
