Bankrupt crypto-currency exchange FTX and the parents of its founder have purchased property for nearly $121 million in the Bahamas, according to a media report. Some of them were supposed to be used by the company’s top executives, documents cited revealed.
Bankman-Fried’s parents attempt to return their vacation home to FTX
FTX, the parents of its founder and CEO Sam Bankman-Fried (SBF), and senior executives of the insolvent crypto-currency exchange have purchased at least 19 properties worth nearly $121 million in the Bahamas over the past two years, Reuters reported, citing property records.
Among the purchases were luxury beachfront homes, including seven condominiums in an expensive resort community called Albany, costing nearly $72 million, the news agency detailed. They were acquired by an FTX unit and were to be used as “residence for key personnel“, the documents state.
Deeds to another property with beach access, located in a gated community in Old Fort Bay, show Bankman-Fried’s parents as signatories. According to one of the documents, dated June 15, it was intended to be used as “vacation home“.
In response to a Reuters inquiry, a spokesman for the couple, Joseph Bankman and Barbara Fried, law professors at Stanford University, said they had been trying to return the property to FTX since before the bankruptcy proceedings, adding without elaboration that they were awaiting further instructions.
Bahamas-based FTX, one of the world’s largest digital asset exchanges, filed for Chapter 11 bankruptcy protection in the United States on Nov. 11. The company went into voluntary administration and lost its licenses in several jurisdictions while SBF resigned as CEO.
Authorities from Japan to Turkey have launched investigations into its recent bankruptcy, which followed a rush of withdrawals earlier in November, leaving a million creditors with combined losses of several billion dollars.
Some of the properties in the Bahamas purchased by recently fired FTX executives.
Reuters based its investigation on property records from the Bahamas Department of Vital Statistics for FTX, Bankman-Fried, his parents and some of the exchange’s top executives. Among them are deeds to three condominiums in a beachfront residence in New Providence called One Cable Beach, which cost between $950,000 and $2 million and were purchased by Bankman-Fried, Nishad Singh, former head of engineering at FTX, and Gary Wang, FTX co-founder.
Singh and Wang, who, along with others involved, did not comment, were among the FTX executives recently fired by the company’s current management. The documents for the most expensive real estate purchase, a $30 million penthouse in the Albany complex, were signed by FTX Property President Ryan Salame.
In a document filed with the U.S. Bankruptcy Court for the District of Delaware, FTX’s new CEO, John Ray, said he understood that the FTX Group’s corporate funds were being used to “purchase homes and other personal items for employees and consultants.” FTX’s Bahamas headquarters is now vacant“, the report adds.