FTX executives spent $256 million on Bahamas real estate

The Bahamas has more than 700 islands and cays; Remote workers and students can live in 16 of them, including Eleuthera (shown here).

Sylvain Sonnet | Image Bank | Good pictures

Bahamian prosecutors say FTX executives Sam Bankman-Fried and Ryan Salem spent $256.3 million to buy and maintain 35 different properties across New Providence, Bahamas.

Now, Bahamas regulators are trying to wrest assets from FTX’s US bankruptcy protection proceedings, telling a Delaware federal bankruptcy judge that allowing the assets to be administered in US courts is administratively ineffective and illegal under Bahamas law.

This is the first real behind-the-scenes look at FTX’s massive real estate spending spree. After tens of millions were spent on the small island development that Bankman-Fried called home, FTX’s holding company bought at least 15 properties and one vacant lot for a total of more than $143 million.

Two large apartments in that private Albany development came in at $30 million, while another cost $21.3 million.

Bankman-Fried and Salame, former co-CEOs of the bankrupt crypto exchange, have invested tens of millions in their current headquarters building and sunk more than $25 million into the Veridian Corporate Center. FTX has landed a new headquarters In April 2022But it has been on hold since the transaction filed for bankruptcy in November.

Now, Bahamian regulators are scrambling to get those assets back. In a filing Monday night, Bahamian lawyers asked a U.S. judge to dismiss the Chapter 11 proceedings for FTX’s property subsidiary. Bahamian lawyers told the court that because all the assets were in the Bahamas and “Bahamian law does not allow a Bahamian company to recognize a foreign bankruptcy,” the Bahamas regulators should be allowed to stay the US bankruptcy proceedings. To take full control of the Bahamian real estate process.

The move could be prompted by FTX US attorneys and CEO John Ray, who have pledged to maximize recovery for FTX clients in the US and abroad through restructuring and asset sales. American and Bahamian lawyers have been fighting over the court’s jurisdiction, with each side crying foul at the other.

FTX filed for bankruptcy protection on Nov. 11 after CoinDesk’s sister hedge fund Alameda Research uncovered significant irregularities on its balance sheet. Finance’s eleventh-hour rescue ultimately failed, with a run on the bank and a sudden liquidity crunch for an exchange once heralded as crypto’s saving grace.

The founder was Bankmann-Fried Now in a Bahamian prison, facing unspecified charges by U.S. prosecutors; The charge sheet is scheduled to be sealed on Tuesday. Crisis continues to loom large in the entire crypto space. BlockFi filed for bankruptcy in November. Recovery and withdrawal of countless exchanges disabled or suspended. As crypto companies release apparently censored evidence in an attempt to boost investor confidence, rumors abound about which exchange will crash next.

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