Disgraced According to a story published on Tuesday, former FTX CEO Sam Bankman-Fried, his parents, and senior officials at the insolvent platform have amassed a fortune in Bahamas real estate over the past two years.
According to property documents cited by Reuters, Bankman-Fried and his allies possess at least 19 properties in the island chain with an estimated worth of about $121 million. The vast real estate enterprise consisted primarily of luxurious coastal villas.
The extravagant purchases contradict Bankman-reputation Fried’s as a slovenly, T-shirt-and-sneakers-wearing benefactor to progressive organizations. They also raise more doubts regarding FTX’s handling of lost customer assets exceeding $1 billion.
The parents of Bankman-Fried, law professors at Stanford University Joseph Bankman and Barbara Fried, are apparently named as signatories on an Old Fort Bay beach property.
According to documents from June of last year, the property was supposed to be a “vacation house” for the family.
The firm was run by FTX executives from a luxurious apartment in the Bahamas.
Seaside Real Estate
A representative for Bankman and Fried stated that the property will be “returned.” It is unknown how the home was acquired.
“Mr. Bankman and Ms. Fried have been attempting to restore the deed to the firm since before the bankruptcy proceedings and are awaiting further instructions,” a spokesman for Bankman-parents Fried’s told the site.
A subsidiary of FTX acquired seven beachfront condominiums for approximately $72 million in the exclusive enclave of Albany — the same resort that allegedly housed the “luxury penthouse” from which Bankman-Fried, his ex-lover Caroline Ellison, and other FTX employees operated the company.
Executives and family of FTX reportedly purchased houses valued close to $121 million.
Seaside Real Estate
According to the property documents, the condominiums were designated as “home for important people” at FTX, however it is unknown who really resided in them.
The most costly home documented was a $30 million penthouse located in an Albany resort. FTX invested $8.55 million on a set of residences that served as the company’s local campus; however, according to a source, staff departed the region earlier this month as FTX collapsed.
Bankman-Fried, FTX co-founder Gary Wang, and former FTX CEO Nishad Singh acquired three more condominiums in One Cable Beach, an additional spectacular waterfront location, as their residences.
Three condominiums were owned by FTX personnel at the One Cable Beach development.
REUTERS
FTX and Bankman-Fried did not respond to a request for comment from Reuters on the papers.
Reuters claimed that it “could not ascertain where FTX and its executives obtained the cash to purchase these homes.”
FTX and Bankman-finances Fried’s are under intense scrutiny as the platform navigates complex bankruptcy processes. A court filing revealed that FTX owes $3 billion to its top 50 creditors, including $226 million to its largest creditor.
Many of the houses are situated in the gated neighborhood of Albany.
REUTERS
Following FTX’s bankruptcy, Bankman-net Fried’s worth plummeted from an estimated $16 billion to nothing in recent days.
The Wall Street Journal claimed this week that Bankman-Fried took out $300 million in 2021 after FTX completed a big financing round, a move he purportedly explained to investors as payment for acquiring a competitor’s interest.
In an interview last week, Bankman-characterization Fried’s of ethics as a “stupid game we awakened Westerners play” set off further warning bells.
FTX filed for Chapter 11 bankruptcy earlier this month.
In the same court filing in which he criticized FTX’s corporate governance policies as worse than those he saw when guiding the famed energy giant Enron through bankruptcy, new FTX CEO John Ray III mentioned the business’s extravagant spending.
“I understand that in the Bahamas, FTX Group company assets were utilized to acquire mansions and other personal things for workers and advisers,” Roy stated in the complaint.
Three condominiums were owned by FTX personnel at the One Cable Beach development.
REUTERS
“I understand that there appears to be no paperwork for some of these transactions as loans, and that certain real estate was recorded in the personal names of these workers and advisors,” Ray continued.
The petition also highlighted a disorganized system in which FTX managers frequently approved cost requests with emojis.
Sam Bankman-FTX Fried’s and parents purchased $121M in Bahamas real estate.