FTX Fallout: Gruhn’s Titanic Splurge, Salame’s Surrender

2024-5-3 08:55

Following FTX’s collapse, the trajectories of its former executives have diverged sharply. Patrick Gruhn, the German fintech entrepreneur who led FTX Europe, recently made headlines with a historic purchase. Meanwhile, Ryan Salame, former co-chief executive of FTX Digital Markets, faced a bleaker resolution, giving up his multimillion-dollar property in the Bahamas.

In a separate development, FTX estate continues to sell its token holdings as a part of its reimbursement plans.

From FTX to Titanic Relics

According to a report from the Wall Street Journal, Gruhn purchased a 14-karat gold pocket watch that survived the Titanic’s sinking. The watch was once owned by John Jacob Astor IV for nearly $1.5 million. Henry Aldridge & Son, an English auction house renowned for its Titanic memorabilia, confirmed the sale.

This purchase is beyond a significant acquisition. Gruhn admitted that this watch is a gift for his wife, and he plans to exhibit it in museums.

“This is more than an artifact; it’s a reminder of resilience and history,” Gruhn commented.

Read more: FTX Collapse Explained: How Sam Bankman-Fried’s Empire Fell

The 14-karat Watch was Purchased by Gruhn. Source: Wall Street Journal

Despite his connections with Sam Bankman-Fried, the controversial co-founder and former CEO of FTX, Gruhn was able to negotiate his way out of a potential legal mess. The settlement freed him from a lawsuit. The lawsuit could have forced him to return over $323 million, which Bankman-Fried allegedly overpaid for the Swiss firm that later became FTX Europe.

Gruhn stated that he had learned of Bankman-Fried’s fraudulent activities when FTX collapsed. He also mentioned that he used money earned from selling his companies to purchase the watch.

Since departing from FTX, he has launched a new business to develop a European crypto derivatives exchange. Additionally, he runs a German Catholic TV network.

Salame’s Settlements and SOL Token Sales

In contrast, Ryan Salame, former co-chief executive of FTX Digital Markets, faced a harsher outcome. He became involved in legal proceedings and ultimately agreed to surrender his $5.9 million property in the Bahamas.

According to the information in a motion from FTX Trading Ltd. and its affiliated debtors and debtors-in-possession, this action was part of his obligation to make restitution for his guilty plea to charges of fraud and conspiracy.

BeInCrypto reported Salame pleaded guilty at the court on September 7, 2023. However, authorities released him on a $1 million bond with the support of two co-signers. His sentencing is set for May 28, 2024.

Meanwhile, the crypto community closely watches the FTX estate’s maneuvers, such as selling Solana tokens.

Read more: Who Is John J. Ray III, FTX’s New CEO?

The FTX estate has begun its second tranche of token sales, fetching between $85 to $110 each. Despite the discount to current market prices, demand remains high. Active participation from notable firms like Galaxy Trading and Pantera Capital in these auctions represents the interest in these sales.

The objective of the estate is to initiate repayments by late 2024. This strategy was developed during a recent meeting of FTX Digital’s Joint Official Liquidators in the Bahamas. They are handling a dual bankruptcy procedure in the United States and the Bahamas.

The post FTX Fallout: Gruhn’s Titanic Splurge, Salame’s Surrender appeared first on BeInCrypto.

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