Former FTX executive Ryan Salame forfeits $5.9m Bahamas mansion

Ryan Salame, former co-CEO of FTX Digital Markets, has agreed to transfer his multimillion-dollar Bahamas home as part of a plea deal in a criminal investigation.

Ryan Salame has agreed to give up a $5.9 million mansion in the Bahamas, according to a request filed May 1 in the United States Bankruptcy Court for the District of Delaware by FTX Trading Ltd and associated debtors.

Salame pleaded guilty in September 2023, and the plea agreement forced him to pay $5.6 million in restitution to debtors.

Instead of paying cash, Salame offers to cover compensation by transferring ownership of his home to FTX Digital Markets Ltd.

According to the document, “Salame will cover the Compensation Amount by transferring to FTX DM the residence, Unit No. 3A, at the Marina Residences at Albany Building 10 Condominium, which he owns in the Bahamas.”

The borrowers argued that this was in their interest because it saved Salame from having to sell the residence soon and at a discount, which would have jeopardized their ability to make money from other Bahamian properties.

In 2023, Bahamian real estate agents reported that high-end sales volumes were down as much as 25%. Meanwhile, Australian real estate agency Properstar announced that apartment prices fell by 28% last year.

Salame faces charges of conspiracy to make illegal political contributions and defraud the Federal Election Commission, as well as conspiracy to operate an unauthorized money transfer business.

The petition also stated that Salame committed to purchase the property in September 2021 for $7.2 million and that the 10% deposit was deposited into the Alameda Research account at Silvergate Bank.

In November of that year, FTX DM sent $8.1 million from a Fidelity Bank account in the Bahamas to Salame’s real estate attorney to pay the remaining purchase price.

Salame and Alameda signed a promissory note, agreeing to pay Alameda $8.1 million in March 2022. But FTX and Alameda collapsed in early November 2022, with bankruptcy filings following shortly after.

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