- Former FTX co-CEO Ryan Salame will give up his $5.9 million Bahamas property to satisfy a $6.6 million restitution payment as part of his plea deal
- Salame purchased the property in the Bahamas for $7.2 million in 2021, with funds wired from Alameda Research and FTX Digital Markets accounts
- Salame’s sentencing is scheduled for May 28, 2024, after pleading guilty to charges related to illegal political donations and operating an unlicensed money transmitting business
Former co-chief executive of FTX Digital Markets, Ryan Salame, has agreed to transfer his multimillion-dollar Bahamas residence as part of a plea agreement in a criminal case.
Background on Property Purchase
According to a recent court filing, Salame purchased the $5.9 million property in September 2021 and made a 10% deposit from an Alameda Research account. In November 2021, FTX Digital Markets wired the remaining $5.1 million balance from its bank account to Salame’s real estate attorney.
In March 2022, Salame and Alameda entered into a promissory note where he agreed to repay the $5.1 million to Alameda. However, FTX and Alameda collapsed in November 2022 before he could repay the amount.
Transferring Property to Settle Debt
As part of his plea agreement, Salame is required to pay $5.6 million in restitution to FTX debtors. Instead of paying cash, he has agreed to satisfy the debt by transferring ownership of the Bahamas residence to FTX Digital Markets Ltd.
The debtors argued this avoids Salame having to sell the property quickly at a discount, which could hurt their ability to sell other Bahamian properties they own.
Outcome of Criminal Charges
Salame pleaded guilty to criminal charges in September 2022. His plea agreement required the restitution payment.
Salame’s sentencing is scheduled for late May 2024. This comes after former FTX CEO Sam Bankman-Fried was sentenced to 25 years in prison in late March.
