Former FTX Digital Markets co-CEO Ryan Salame is set to transfer ownership of his $5.9 million house in the Bahamas to settle criminal charges he faces. According to a filing in the U.S. Bankruptcy Court for the District of Delaware, Salame, who was involved in campaign finance violations and operating an unlicensed money-transmitting business, will forfeit the house as part of his plea agreement. FTX Digital Markets, a subsidiary of FTX Trading Ltd., went bankrupt in November 2022, with Salame’s role at the company involving handling political donations, particularly to the Republican Party.
Salame, who is currently out on a $1 million bond after pleading guilty in September 2023, was charged with conspiracy to make unlawful political contributions, defrauding the Federal Election Commission, and operating an unlicensed money-transmitting business. As part of the agreement between Salame and the Debtors, the house in the Bahamas will be transferred to FTX Digital Markets in lieu of Salame paying the Restitution Amount in cash. The house, located in the Marina Residences at Albany Building 10 Condominium, has recently been appraised at $5,900,000, exceeding the Restitution Amount required.
In November 2023, FTX Trading Ltd.’s founder, Sam Bankman-Fried, was convicted on fraud charges after a trial that involved testimony from several FTX and Alameda Research employees, including Gary Wang, Nishad Singh, and Ellison. Salame, who was involved in the same crypto scandal as Bankman-Fried, will be the first of the co-conspirators to face legal consequences for his role when he is sentenced on May 28. Bankman-Fried has also filed to appeal his conviction and 25-year prison sentence, seeking to overturn the outcome of his landmark fraud trial.
The agreement for Salame to transfer his Bahamas house to settle criminal charges comes as a result of negotiations between him and the Debtors. The decision to transfer ownership of the house in lieu of cash payment was reached in a constructive and arm’s-length manner. This development highlights the repercussions faced by individuals involved in illegal activities within the cryptocurrency industry and serves as a reminder of the legal and financial consequences of such actions.
As the legal proceedings continue for Salame and Bankman-Fried, the cryptocurrency industry faces scrutiny and regulatory challenges due to criminal activities within the sector. The fallout from the FTX Trading Ltd. scandal, involving campaign finance violations, fraud, and unlicensed money-transmitting operations, underscores the importance of compliance with regulations and ethical business practices in order to maintain integrity and trust within the industry. The case serves as a cautionary tale for individuals and companies operating in the cryptocurrency space and highlights the need for transparency and accountability in all business dealings.
