FTX Exec Loses Paradise, Surrenders $5.9 Million Bahamas Mansion

The
implosion
of
cryptocurrency
giant
FTX
continues
to
cast
a
long
shadow,
with
the
latest
twist
involving
a
Bahamas
mansion
and
a
plea
deal.

Ryan
Salame,
the
former
co-CEO
of
FTX
Digital
Markets,
a
subsidiary
of
the
now-bankrupt
exchange,
has
agreed
to
forfeit
his
luxury
home
on
the
Caribbean
island
as
part
of
a
criminal
prosecution
settlement.

FTX:
The
Spectacular
Rise
And
Fall

Once
a
shining
star
in
the
crypto-verse,

FTX
boasted
a
valuation
of
$32
billion
at
its
peak.
However,
the
company’s
house
of
cards
came
tumbling
down
in
November
2022.
Allegations
of
misuse
of
customer
funds
and
mismanagement
sparked
a
liquidity
crisis,
leading
to
the
crypto
exchange’s
sudden
bankruptcy
filing.
The
collapse
sent
shockwaves
through
the
cryptocurrency
market,
wiping
out
billions
of
dollars
in
investor
wealth
and
eroding
trust
in
the
industry.

FTX
Settles
with
Ryan
Salame
by
exchanging
a
property
in
the
Bahamas.

His
settlement
under
his
plea
was
for
$5.6mm
and
his
settlement
to
achieve
that
is
by
giving
up
a
property
in
the
Albany
in
the
Bahamas
worth
$5.9mm
(was
paid
for
previously
with
a
loan
from
FTX).

pic.twitter.com/80eexcsEvW

—
Mr.
Purple
🛡️
(@MrPurple_DJ)

May
1,
2024

Salame’s
Bahamas
Dealings

According
to
court
documents
filed
by
the
company’s
debtors
with
the
Delaware
Bankruptcy
Court,
Salame
faces
charges
of
conspiracy
to
make
illegal
campaign
contributions,
mislead
election
authorities,
and
operate
an
unlicensed
money
transmitter
business.
The
filing
also
sheds
light
on
a
curious
Bahamas
property
transaction.

A
$5.9
Million
House
Financed
By
Alameda
Research

The
court
documents
allege
that
in
September
2021,
Salame
agreed
to
purchase
a
$7.2
million
mansion
in
the
Bahamas.
Notably,
a
10%
deposit
for
the
property
came
from
an
account
belonging
to
Alameda
Research,
another
FTX
affiliate
implicated
in
the
exchange’s
downfall.
Just
two
months
later,
FTX
Digital
Markets
itself
wired
the
remaining
balance
to
Salame’s
attorney
from
a
Bahamas
bank
account.

Excerpt of US Bankruptcy Court vs Ryan Salame

Turning
A
Paradise
Property
Into
Repayment

With
Salame
pleading
guilty
to
the
criminal
charges,
the
plea
deal
offers
a
unique
solution.
Instead
of
a
traditional
cash
restitution
of
$5.6
million,
Salame
will
surrender
ownership
of
his
Bahamas
residence
to
FTX
debtors.
This
arrangement
seems
to
benefit
both
parties.

Salame
avoids
the
hassle
and
potential
financial
loss
of
selling
the
property
in
a
currently
sluggish
Bahamas
real
estate
market,
where
high-end
sales
volumes
have
reportedly
dropped
by
as
much
as
25%.
For
FTX
debtors,
the
mansion
presents
a
tangible
asset
that
can
be
liquidated
to
recoup
some
of
the
lost
funds
owed
to
creditors.

Total crypto market cap at $2.14 trillion on the daily chart: TradingView.com

Lingering
Questions
And
Regulatory
Scrutiny

The
FTX
saga
continues
to
raise
questions
about
the
company’s
internal
financial
controls
and
the
conduct
of
its
executives.
Salame’s
Bahamas
property
deal,
funded
by
an
FTX
affiliate,
raises
concerns
about
potential
conflicts
of
interest
and
the
use
of
customer
funds.

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Regulators
worldwide
are
likely
to
scrutinize
this
case
closely
as
they
grapple
with
establishing
a
more
robust
framework
for
the
cryptocurrency
industry.

Featured
image
from
Business
Insider
India,
chart
from
TradingView