In a recent development in the ongoing legal proceedings against former FTX Digital Markets co-CEO Ryan Salame, he has agreed to transfer his luxury property in the Bahamas worth $5.9 million to FTX Digital Markets Ltd. as part of his plea agreement in a criminal case.
According to a motion filed by FTX Trading Ltd. and its affiliated debtors with the United States Bankruptcy Court for the District of Delaware on May 1, Salame pleaded guilty to criminal charges in September 2023 and agreed to pay $5.6 million in restitution to the debtors. Instead of paying in cash, Salame proposed to satisfy the restitution by transferring his residence in the Bahamas to FTX Digital Markets Ltd.
The filing revealed that Salame agreed to purchase the property in September 2021 for $7.2 million, with the 10% deposit being wired from an Alameda Research account at Silvergate Bank. In November of that year, FTX DM wired $8.1 million from its bank account at Fidelity Bank in the Bahamas to Salame’s real estate attorney to pay the balance of the purchase price. However, FTX and Alameda imploded in early November 2022, with bankruptcy filings coming shortly after.
The debtors argued that this transfer is in their best interests as it avoids Salame having to sell the residence quickly at a discount, which could negatively impact their ability to monetize other Bahamian properties. The filing also revealed that Salame agreed to purchase the property in September 2021 for $7.2 million, with the 10% deposit being wired from an Alameda Research account at Silvergate Bank.
Salame was charged with conspiracy to make unlawful political contributions and defraud the Federal Election Commission, and conspiracy to operate an unlicensed money-transmitting business. His sentencing is currently scheduled for May 28, 2024.
This development comes after the recent sentencing of former FTX CEO Sam Bankman-Fried, who was sentenced to 25 years in prison in late March. The collapse of FTX and Alameda Research has had a ripple effect on the cryptocurrency industry, with many investors and traders losing significant amounts of money.
Despite this, the industry continues to grow and evolve, with many experts predicting a bright future for cryptocurrencies and blockchain technology. As the legal proceedings against Salame and other former executives of FTX and Alameda Research continue, investors and traders will be watching closely to see how it will impact the industry as a whole.
