Summary:

In the Ransom theory, Jesus became the ransom by which God redeemed humanity from Satan’s power.  This meshes with the living parable of Jesus as our Kinsman Redeemer and with Passover.

The Ransom Theory of the Atonement holds that Jesus died as a ransom sacrifice, paid to Satan.  In this view, Adam and Eve sold humanity over to Satan at the time of the Fall, leaving each of our souls in debt.  Some theologians say that all men have freely sold themselves into slavery to Satan; therefore, Satan has the right to demand our death as the “penalty” for sin, and his rights over mankind must be respected.

So Jesus’ death was a payment to satisfy that debt, and in that act of ransom Christ freed humanity from our bondage to sin and death.  The Ransom theory is supported by Jesus’ statement recorded in both Matthew and Mark:

Matthew 20:28 NIV (also Mark 10:45)

“…just as the Son of Man did not come to be served, but to serve, and to give his life as a ransom for many.”

Objections to the Ransom Theory

Theologians have objected that it isn’t possible for God to owe a debt to Satan.  The Bible also doesn’t say that mankind owes anything to Satan, either.  So this theory may give Satan more power and credit than he deserves.  If mankind owes a debt, it is to our Creator alone.