The US Department of Justice May Seize FTX Jets
The US Department of Justice (DOJ) is planning to seize two luxury jets owned by FTX, the cryptocurrency exchange founded by Sam Bankman-Fried. The DOJ claims that the jets were purchased with funds obtained through fraud. The specific aircraft in question are a Bombardier Global and an Embraer Legacy. Island Air Capital (IAC), which operates the jets, bought the Embraer for $12.5 million and the Bombardier for $15.9 million.
Ownership Conflict Between FTX and DOJ
There is already an ownership dispute between FTX and the DOJ regarding these luxury jets. IAC has filed a motion with the US Bankruptcy Court seeking clarity on the ownership of the aircraft. According to IAC, the government believes that SBF used fraudulent funds to purchase the planes, while FTX claims ownership and states that the loans used for their purchase were not documented.
IAC Seeks Clarity on Ownership
IAC is seeking clarity on the ownership of the jets in order to determine who will be responsible for ongoing repairs and inspections. The aviation company has stated that no one associated with FTX has flown in either plane, as they were undergoing upgrades when FTX filed for bankruptcy. IAC argues that it is unfair to expect them to continue funding expenses without any protection.
Former FTX Employees Testify at SBF Trial
The trial of Sam Bankman-Fried for fraud and conspiracy entered its third day, with former employees at FTX taking the stand. Gary Wang, former chief technology officer at FTX, testified that Alameda, a trading firm affiliated with FTX, had special privileges including unlimited fund withdrawals from FTX. He also revealed that Alameda had a line of credit of around $65 billion on FTX and could execute trades faster than other market makers.
Adam Yedidia, a former FTX engineer and roommate of Bankman-Fried, also testified. He stated that SBF encouraged employees to use the encrypted messaging app Signal with auto-delete features. Yedidia added that Bankman-Fried believed regulators could use messages against the company and wanted to keep them to a minimum.
Hot Take: DOJ’s Seizure of FTX Jets Highlights Ongoing Legal Battle
The US Department of Justice’s move to seize the luxury jets owned by FTX adds another layer to the ongoing legal battle between the government and the cryptocurrency exchange. The dispute over ownership raises questions about the source of funds used for the aircraft purchase, as well as who will be responsible for maintenance costs. Meanwhile, testimony from former FTX employees reveals further details about the operations and practices within the company. As the trial continues, it remains to be seen how these developments will impact both FTX and Sam Bankman-Fried.
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