Ryan Salame, the former co-CEO of FTX Digital Markets, has agreed to transfer ownership of his $5.9 million residence in the Bahamas to the FTX bankruptcy estate. This is part of the terms of Salame's September 2023 plea agreement requiring $5.6 million in restitution payments.

Rather than paying cash, Salame proposed satisfying the restitution by deeding over his condo unit at the luxury Marina Residences at Albany development. FTX's debtors approved this arrangement, stating it was preferable to Salame being forced to quickly sell the property at a discount given the depressed Bahamas real estate market.

Condo Purchased With FTX/Alameda Funds Court filings reveal that Salame originally agreed to purchase the residence for $7.2 million in September 2021, putting down a 10% deposit funded by Alameda Research.

In November 2021, FTX Digital Markets then wired the $8.1 million balance from its bank account to Salame's real estate attorney to complete the purchase.

Salame later entered into a promissory note with Alameda in March 2022 to repay that $8.1 million amount. However, that agreement became void when FTX collapsed into bankruptcy in November 2022.

Part of Plea Deal On Criminal Charges Salame pleaded guilty in December 2023 to criminal charges including conspiracy to make unlawful campaign donations and operating an unlicensed money transmission business related to his role at FTX.

The agreement required Salame to pay $5.6 million to FTX bankruptcy debtors as restitution. By transferring the Bahamas condo instead, he is satisfying that obligation as part of his conviction.

Salame is currently scheduled to be sentenced on May 28th, 2024. His former boss Sam Bankman-Fried received a 25-year prison term in late March for his central role in FTX's downfall.

The transfer of the multimillion-dollar property represents another move by FTX bankruptcy officials to claw back assets and funds from Bankman-Fried's key lieutenants in order to eventually repay creditors. The process remains ongoing over a year since FTX's implosion.