Former FTX Exec Agrees to Transfer $5.9 Million Bahamas Property in Plea Deal

Ryan Salama, former co-CEO of FTX Digital Markets, has agreed to transfer his multi-million-dollar holdings in the Bamas as part of a plea agreement in his case.

The move comes after Salama pleaded guilty to criminal charges in September 2023, and the plea agreement required him to pay $5.6 million in restitution to the debtors.

Transfer of ownership

according to a movement FTX Trading Ltd and its debtors filed a lawsuit in the US Bankruptcy Court for the District of Delaware on May 1, in which Salama will give up a $5.9 million luxury home he owns in the Bahamas.

Instead of paying the redemption amount in cash, Salama proposes to repay the debt by transferring the legal ownership of the residence to FTX Digital Markets Ltd.

“Salama will make the restitution amount by transferring a residence he owns in the Bahamas, Unit No. 3A of the Marina Residences in the Albany 10 Condominium Building (the ‘Residence’), to FTX DM,” the order said.

Under this condition, Salama must take all necessary steps to transfer legal ownership of the residence to FTX DM. Once legal ownership is transferred, the redemption amount will be considered satisfied.

The debtors say this arrangement is in their best interest. By avoiding a quick sale of the residence at a discounted price, they can protect their ability to generate income from other properties in the Bahamas.

The difference of $306,822.09 between the assessed value and the restitution amount will be added to the amount Salama owes to the debtors in the promissory note.

Safety transactions

The court filing also revealed that Salama agreed to purchase a property in September 2021 for $7.2 million. The initial deposit of 10% was transferred from Alameda Research's account at Silvergate Bank.

Later, in November of the same year, FTX DM transferred $8.1 million from its Fidelity Bank account in the Bahamas to Salama's real estate lawyer. The purpose of this payment was to cover the remaining balance of the purchase price of the property.

In March 2022, Salama and Alameda entered into a promissory note, committing to pay the company $8.1 million. FTX and Alameda faced challenges and eventually collapsed in early November 2022, leading to bankruptcy filings shortly after.

Salama was charged with conspiring to make illegal political contributions and defraud the Federal Election Commission. He was also involved in a conspiracy to operate an unlicensed money transfer company.

He is currently scheduled to be sentenced on May 28, 2024. Meanwhile, former FTX CEO Sam Bankman Fried received a 25-year prison sentence in late March.