- FTX subsidiary FTX Property Holdings Ltd bought at least 19 luxurious properties in the Bahamas worth $121 million, according to Reuters.
- Former CEO Sam Bankman-Fried, head of engineering Nishag Singh, FTX co-founder Gary Wang, and FTX Property Holdings president Ryan Salame are among FTX executives that bought the properties.
- Bankman-Fried’s parents Joseph Bankman and Barbara Fried are listed as signatories for a $16.4 million house that’s intended to serve as a “vacation home.”
- It’s unknown what funds FTX used to buy the properties.
FTX executives, former CEO Sam Bankman-Fried, and his parents bought at least 19 real estate properties in the Bahamas worth $121 million prior to the blowup of the once-mighty company, according to a report by Reuters.
Reuters reviewed official property records, which showed that FTX Property Holdings Ltd, a subsidiary of FTX, bought mostly luxury beachfront homes, including seven condominium properties in Albany, an expensive 600-acre oceanside resort community.
These properties cost $72 million and were reserved as a “residence for key personnel,” but it’s currently unknown who was staying there.
Other high-profile purchases include a $30 million penthouse in Albany bought by Ryan Salame, the president of FTX Property, and three $950,000-$2 million condominiums at One Cable Beach purchased by Bankman-Fried, Nishad Singh, the ex-head of engineering at FTX, and Gary Wang, co-founder of FTX. These condominiums might be where Bankman-Fried lived together with his roommates.
Property records also show that a property with beach access worth $16.4 million has Bankman-Fried’s parents, Joseph Bankman and Barbara Fried, Stanford University law professors, as signatories. The property is labeled as a “vacation home” in a document dated June 15 of this year. A spokesman for Bankman-Fried’s parents told Reuters that they want to return the “deed” to the company and “are awaiting further instructions.”
Bankman-Fried, who used to describe himself as an avid follower of the effective altruism movement, moved FTX’s headquarters from Hong Kong to the Bahamas in September 2021. The cluster of houses, worth $8.55 million, has been abandoned for some time now. FTX Property also had a plot of land near the headquarters that was supposed to be developed into an office space.
FTX filed for Chapter 11 bankruptcy on November 11 after a flurry of troubling revelations that sparked a bank run on the now-defunct exchange. FTX has allegedly mishandled up to $10 billion in customer funds by sending them to its sister crypto trading firm, Alameda Research, which then lost it in risky trades.
According to court filings, FTX might have over one million creditors and owe over $3 billion to the 50 largest creditors.
Former CEO Bankman-Fried is currently under the supervision of the Bahamas government, according to Bahamas regulators. It’s unclear where other FTX executives are.
On the Flipside
- It’s unclear what money FTX used to purchase its real estate in the Bahamas.
- It’s unknown whether someone still lives in FTX’s properties.
- FTX Property and other subsidiaries might have purchased other properties that the public isn’t aware of yet.
Why You Should Care
Property records show that Bankman-Fried had been trying to build an FTX empire in the Bahamas. It’s still unclear who the real owners are and what funds they used to purchase the properties. However, as the bankruptcy process moves forward, more details and evidence will come to light regarding the intentions and real use of the properties.
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