Former FTX executive Ryan Salame forfeits $5.9m Bahamas mansion

As a researcher with a background in real estate and finance, I find the case of Ryan Salame’s Bahamian property transfer intriguing. The details of the plea agreement and the implications for FTX Digital Markets and the debtors involved are significant.

Ryan Salame, who previously held the position of co-CEO at FTX Digital Markets, has chosen to relinquish his valuable Bahamian residence worth millions as part of a plea bargain in the ongoing criminal proceedings against him.

As a crypto investor following the latest developments in the industry, I’ve learned that Ryan Salame, an affiliate of FTX Trading Ltd and connected debtors, has reached an agreement to surrender a luxurious $5.9 million mansion situated in the Bahamas as part of the ongoing bankruptcy proceedings in the United States Bankruptcy Court for the District of Delaware, effective May 1st.

In September 2023, Salame admitted guilt to criminal accusations, leading him to be obligated to pay a total of $5.6 million in reparations to the affected parties.

he will transfer the ownership of his house to FTX Digital Markets Ltd. as a form of compensation.

The document states that Salame intends to fulfill the Restitution Amount obligation by transferring ownership of Bahamas residence Unit No. 3A in Albany Building 10, Marina Residences, to FTX DM.

The debtors argued that this arrangement benefited them as it prevented Salame from having to quickly sell the residence at a discounted price, thereby preserving their potential profits from other Bahamian properties.

In the year 2023, Bahamian real estate professionals reported a significant decrease of approximately 25% in high-end sales volumes. Concurrently, data from Australian real estate agency Properstar indicated a fall of around 28% in apartment prices over the past twelve months.

As a financial analyst examining this case, I can rephrase the given information by saying: I am analyzing allegations against Salame, which include conspiring to make unlawful political contributions and deceive the Federal Election Commission, in addition to operating an unauthorized money-transmitting business without proper authorization.

The petition added that Salame agreed to purchase the property for $7.2 million in September 2021, and a $720,000 down payment was transferred from an Alameda Research account held at Silvergate Bank.

In November of that year, FTX DM transferred $8.1 million from its account at Fidelity Bank in the Bahamas to the law firm representing Salame for the final payment on a real estate transaction.

As a crypto investor looking back at the events of 2022, I recall that in March of that year, I entered into an agreement with Alameda, whereby I pledged to pay them $8.1 million based on a promissory note. However, unfortunate circumstances struck in early November when both FTX and Alameda faced insolvency. Filings for bankruptcy soon followed thereafter.

Salame’s sentencing date is presently set for May 28, 2024.

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2024-05-03 12:26