FTX’s Bankruptcy Estate to Sell Bahamas Properties
According to a court filing, FTX’s bankruptcy estate is planning to sell several properties in the Bahamas, including units previously occupied by FTX staff and former CEO Sam Bankman-Fried. The proposed court order suggests selling a total of 35 FTX-owned real estate units. Most of the exchange’s employees and C-suite executives worked in the Bahamas before the collapse of the exchange in late 2022. The list of properties includes the Orchid Penthouse, where Bankman-Fried and his top lieutenants resided.
Sale Proceeds for Distribution to FTX Customers
The funds generated from these property sales will be used to distribute to FTX customers. Following its bankruptcy declaration, the exchange owed $8.7 billion to its former users. In December, FTX entities in the U.S. and the Bahamas settled and agreed to pool their assets together for coordinated future distributions. At one point, FTX owned a total of 38 properties in the Bahamas worth $199 million. Bankman-Fried, who was found guilty of defrauding FTX customers and investors, is scheduled for sentencing in March.
Hot Take: FTX Seeks to Settle Debts through Property Sales
FTX’s move to sell its Bahamian properties indicates an effort to settle its outstanding debts with customers. By liquidating these assets, the bankrupt exchange aims to generate funds that can be distributed among those who were affected by its collapse. This development also highlights the luxurious lifestyle enjoyed by FTX staff and executives during their time in the Bahamas. As legal proceedings against former CEO Sam Bankman-Fried continue, his sentencing in March will determine further consequences for his actions. Overall, this property sale represents a significant step in FTX’s bankruptcy resolution process.
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