Former co-CEO of FTX Digital Markets, Ryan Salame, is being forced to transfer his $5.9 million house in the Bahamas to settle criminal charges related to his involvement in a cryptocurrency scandal. The U.S. Bankruptcy Court for the District of Delaware stated that Salame, who worked at FTX Digital Markets, will forfeit his house as part of his plea agreement in the case United States v. Salame. Salame was responsible for the exchange’s political donations, including those to the Republican Party. He pleaded guilty in September 2023 to violating campaign finance laws and operating an unlicensed money-transmitting business.
FTX Digital Markets was a subsidiary of FTX Trading Ltd., a major cryptocurrency exchange led by Sam Bankman-Fried that went bankrupt in November 2022. Salame’s role in the scandal involved conspiracy to make unlawful political contributions, defrauding the Federal Election Commission, and operating an unlicensed money-transmitting business. He is currently out on a $1 million bond and is the first of Bankman-Fried’s co-conspirators to face legal consequences for his actions. Salame is set to be sentenced on May 28 for his involvement in the cryptocurrency scandal.
In a filing by the U.S. Bankruptcy Court for the District of Delaware, it was revealed that Salame has agreed to transfer his Bahamas residence, valued at $5.9 million, to satisfy the restitution amount rather than paying it in cash. The property, Unit No. 3A in the Marina Residences at Albany Building 10 Condominium, will be transferred to FTX Digital Markets, acting on behalf of the debtors. This arrangement was made following negotiations between Salame and the debtors and was deemed satisfactory to settle the criminal charges against him.
During the trial related to the FTX scandal, several employees of FTX and Alameda Research testified against Sam Bankman-Fried, including FTX co-founder Gary Wang and FTX’s former Head of Engineering Nishad Singh. Bankman-Fried was convicted on seven counts of fraud and sentenced to 25 years in prison. Last week, it was revealed that he has filed to appeal his conviction and sentence, indicating that the legal battle surrounding the cryptocurrency scandal is far from over. The appeal filing by Bankman-Fried’s lawyers seeks to overturn the 25-year prison sentence that was imposed following his conviction for fraud and conspiracy charges.
The involvement of Salame and Bankman-Fried in the cryptocurrency scandal has drawn significant attention to the issue of fraud and illegal activities within the industry. The legal consequences faced by both individuals serve as a warning to others involved in cryptocurrency exchanges and related businesses. The transfer of Salame’s Bahamas residence to settle criminal charges reflects the seriousness of the crimes committed and the need for restitution to those affected by the scandal. As the legal proceedings continue, the fallout from the FTX scandal is likely to have far-reaching implications for the cryptocurrency industry as a whole.
