Former FTX Exec Agrees to Transfer $5.9 Million Bahamas Property in Plea Deal
Former FTX Digital Markets co-chief executive Ryan Salame has agreed to transfer his multimillion-dollar property in the Bamas as part of a plea agreement 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.
The Property Transfer
According to a motion filed by FTX Trading Ltd and affiliated debtors with the United States Bankruptcy Court for the District of Delaware on May 1, Salame will give up a luxurious $5.9 million house he owns in the Bahamas.
Instead of paying the restitution amount in cash, Salame proposes to satisfy the debt by transferring the legal title of the residence 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.
Under the stipulation, Salame must take all the necessary steps to transfer the legal title of the residence to FTX DM. Once the legal title is transferred, the restitution amount will be deemed satisfied.
The debtors argue that this arrangement is in their best interests. 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 against the amount Salame owes the debtors on the promissory note.
Salames Transactions
The court filing also revealed that Salame had agreed to purchase a property in September 2021 for $7.2 million. The initial 10% deposit was wired from an Alameda Research account at Silvergate Bank.
Later, in November of the same year, FTX DM transferred $8.1 million from its Fidelity Bank in the Bahamas bank account to Salames real estate attorney. This payment was intended to cover the remaining balance of the property purchase price.
In March 2022, Salame and Alameda entered into a promissory note, in which he committed to paying back the $8.1 million to the firm. FTX and Alameda faced challenges and ultimately collapsed in early November 2022, leading to bankruptcy filings shortly after.
Salame was charged with conspiracy to make unlawful political contributions and defraud the Federal Election Commission. He was also involved in a conspiracy to operate an unlicensed money-transmitting business.
His sentencing is currently scheduled for May 28, 2024. Meanwhile, the former FTX CEO, Sam Bankman-Fried, received a 25-year sentence in late March.
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Text source: CryptoPotato
