Former FTX Digital Markets co-CEO Ryan Salame has agreed to transfer his multimillion-dollar property to Bamas as part of a plea deal in his case.
The move comes after Salame pleaded guilty to criminal charges in September 2023 and his plea agreement required him to pay $5.6 million in restitution to the debtors.
Transfer of ownership
According to a movement filed by FTX Trading Ltd and its affiliated debtors in the United States Bankruptcy Court for the District of Delaware on May 1, Salame will forfeit a luxurious $5.9 million home he owns in the Bahamas.
Instead of paying the restitution amount in cash, Salame offers to settle the debt by transferring legal title to FTX Digital Markets Ltd.
The filing stated: “Salame will satisfy the restitution amount by transferring a residence he owns in the Bahamas, Unit No. 3A in the Marina Residences at Albany Building 10 Condominium (the “Residence”), to FTX DM.
According to this stipulation, Salame must take all necessary measures to transfer the legal title of residence to FTX DM. Once legal title has been transferred, the restitution amount will be deemed satisfied.
The debtors argue that this arrangement is in their best interest. By avoiding a quick sale of the residence at a discount, they can protect their ability to monetize other Bahamian properties.
The difference of $306,822.09 between the appraised value and the restitution amount will be credited to the amount Salame owes the debtors on the promissory note.
Salamé's transactions
The court filing also revealed that Salame agreed to purchase a property in September 2021 for $7.2 million. The initial 10% deposit was wired from an Alameda Research account with Silvergate Bank.
Later, in November of the same year, FTX DM transferred $8.1 million from its Fidelity Bank bank account in the Bahamas to Salame's real estate lawyer. This payment was intended to cover the remaining balance of the purchase price of the property.
In March 2022, Salame and Alameda entered into a promissory note in which he agreed to repay the $8.1 million to the company. FTX and Alameda faced difficulties and ultimately declared bankruptcy in early November 2022, leading to a bankruptcy filing shortly thereafter.
Salame was charged with conspiring to make illegal political contributions and defrauding the Federal Election Commission. He was also involved in a conspiracy to operate an unlicensed money transfer business.
His sentencing is currently scheduled for May 28, 2024. Meanwhile, former FTX CEO Sam Bankman-Fried was sentenced to 25 years in prison in late March.
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