A thousand miles away from FTX’s Bahamanian villas and beach-side getaways, one top executive of the failed crypto exchange spotted a different investment opportunity: the restaurant scene of a tiny town in Western Massachusetts.
(Bloomberg) — A thousand miles away from FTX’s Bahamanian villas and beach-side getaways, one top executive of the failed crypto exchange spotted a different investment opportunity: the restaurant scene of a tiny town in Western Massachusetts.
Ryan Salame, the former co-chief executive officer of FTX Digital Markets who tipped off Bahamian authorities to possible misuse of funds at the exchange, spent more than $6 million on restaurants and real estate in the Berkshire town of Lenox, according to local property records. He owns five dining enterprises in the hamlet through the Lenox Eats Collective: two restaurants, a dessert shop, a catering company and a food truck called The Lunch Pail.
In the past month, the spending habits of Salame and other FTX executives have come under scrutiny. Company leaders sank millions into political campaigns and real estate, despite several of them owing money to the infamous crypto empire.
Bankruptcy filings revealed that Salame received a $55 million loan from Alameda Research, FTX’s trading arm. The firm also lent $1 billion to Sam Bankman-Fried, Salame’s former co-executive, and $543 million to former engineering chief Nishad Singh. Salame didn’t respond to messages seeking comment.
Salame told Bahamian regulators on Nov. 9 that client assets were transferred to Alameda Research to “cover financial losses” at the trading firm, court filings show. FTX and more than 100 related companies, including Alameda, filed for bankruptcy protection Nov. 11.
Lenox-area residents told Bloomberg that Salame, who primarily resided in the Bahamas, was not involved in the day-to-day operations of the restaurants. He relegated much of those responsibilities to local manager Jane Blanchard, who declined to comment on recent events, adding only that she is a “big Ryan fan.”
Salame, a 2015 graduate of the University of Massachusetts Amherst, purchased properties through one of the more than half a dozen businesses connected to him, each registered in Massachusetts according to state records. In addition to buying up property, Salame gave more than $20 million to Republican candidates this cycle. Other executives at FTX exhibited similar interest in political giving.
But Salame’s flair for restaurants was unique. The spending made him a heavyweight in the quaint restaurant scene of Lenox, a town of roughly 5,000 people according to 2020 census data.
The purchases also surprised community members. The Massachusetts native began eyeing local restaurants in 2020 as the Covid-19 pandemic forced many eateries to shutter their operations. At the time, he answered questions from local reporters regarding staffing shortages and the prudence of restaurant investments amid economic uncertainty.
Over the past month, Salame has kept quiet online—unlike Bankman-Fried. The now disgraced founder had been active on social media and answered questions via live stream before federal prosecutors levied criminal charges against him this week. Bankman-Fried is currently in a Bahamas jail after being denied bail.
Since FTX filed or bankruptcy, Salame’s eateries have continued to operate per usual. This month, The Olde Heritage Tavern and Firefly Gastropub & Catering Co. hosted guests for the town’s pub crawl, the Jolly Poker Restaurant Walk. Salame’s food truck parked outside of a local holiday market over the weekend.
Jennifer Nacht, executive director at the Lenox Chamber of Commerce, said restaurants often change hands in the town—although these particular circumstances are a bit unusual. Nacht, who sold her ice cream store “The Scoop” to Salame in 2021, said she met him on multiple occasions, describing him as smart and kind.
“He wanted to preserve the town as it was,” Nacht said. “I really think he had a sincere interest.”
–With assistance from Kenneth Hughes.
(Updates to clarify Salame’s college in the seventh paragraph.)
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