FTX Property Buying Spree: SBF Parents, FTX Firms Spent $121 Million On Bahamas Real Estate

Bankrupt crypto exchange FTX, Sam Bankman-Fried’s parents, and senior officials of the firm purchased at least 19 homes in the Bahamas valued at roughly $121 million over the last two years, according to official documents.

The majority of FTX’s purchases were luxury beachfront houses, including seven condominiums in Albany, for about $72 million.

The FTX founder’s parents, Stanford University law professors Joseph Bankman and Barbara Fried, are listed as signatories on documents for another residence with beach access in Old Fort Bay, a gated enclave that was formerly home to a British colonial fort built in the 1700s to protect against pirates. According to one of the paperwork dated June 15, the property will be used as a “vacation house.”

“Since before the bankruptcy proceedings, Mr. Bankman and Ms. Fried have been seeking to return the deed to the company and are awaiting further instructions,” the spokesperson for the parents said.

Reuters investigated property records at the Bahamas Registrar General’s Department. In 2021 and 2022, FTX Property Holdings Ltd, an FTX subsidiary, purchased 15 properties valued over $100 million.

The unit’s most costly purchase was a $30-million penthouse at the Albany. The property papers for the penthouse, dated March 17, were signed by Ryan Salame, president of FTX Property, and said that it was intended for “residence for key personnel.”

Three condominiums at One Cable Beach, a beachfront property in New Providence, were also purchased. According to records, the condominiums cost between $950,000 and $2 million and were purchased for domestic use by Nishad Singh, the former head of engineering at FTX, Gary Wang, an FTX co-founder, and Bankman-Fried.

Bankman-Fried has reportedly maintained a somewhat secluded existence in the Bahamas, surrounded by a small clique of colleagues, some of whom were in intimate relationships with other FTX employees. He and his top lieutenants shared a penthouse at Albany, a 600-acre oceanfront resort on the Bahamas’ island of New Providence.

READ: In A Nutshell: How FTX Fell From Grace, According To Sam Bankman-Fried Himself

The Bahamas Securities Commission stated recently that it had ordered the transfer of all digital assets of FTX Digital Markets, a Bahamas-based FTX company that filed for Chapter 15 bankruptcy protection two days ago.

New court filings for the now-bankrupt crypto exchange have also disclosed that it owes its 50 largest unsecured creditors a total of $3.1 billion, with a couple of customers due more than $200 million each.

According to a redacted list of the top 50 creditors posted late Saturday, FTX-linked firms owe more than $226 million to their single largest unsecured creditor. The rest were classified as customers, and eleven of them have claims totaling more than $100 million.

FTX stated that firm has assets and liabilities totaling at least $10 billion. According to its lawyers, the action may involve more than one million creditors.

Currently, FTX is in the process of filing for bankruptcy, where around one million creditors are expected to chase the liquidation. Bankman-Fried has already stepped down from management and was replaced by Enron liquidator John J. Ray III as CEO.

Ray was reportedly shocked upon seeing “a complete failure of corporate controls and such a complete absence of trustworthy financial information” in the crypto exchange.

FTX’s implosion has dragged some of the biggest names in the crypto industry. Most recently, Genesis Global’s lending arm announced that it is temporarily freezing redemptions and new loan originations after declaring it has around $175 million locked in FTX. 

Earlier this week, Ikigai Asset Management and BlockFi each revealed their exposure to FTX, resulting in the firms halting their respective withdrawals. In its Q3 2022 report, Galaxy Digital reportedly had around $76.8 million in cash and digital assets invested in the embattled crypto exchange, around $47.5 million of which is in the process of being withdrawn.

Information for this briefing was found via Reuters and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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