EXCLUSIVE Bankman-Fried’s FTX, parents buy $121 million Bahamas estate


  • The FTX division has purchased 7 condos in a high-end resort for “key personnel”.
  • Bankman-Fried’s parents named the owners of the $16.4 million vacation home
  • Bankman and Fried tell Reuters: They want to return the document to the FTX

NEW PROVIDENCE, Bahamas, Nov 22 (Reuters) – Sam Bankman-Fried’s FTX, parents and top executives of the failed cryptocurrency exchange bought at least 19 properties in the Bahamas over the past two years worth about $121 million, official property records show.

Most of FTX’s purchases were luxury waterfront homes, including seven condominiums in an expensive resort community called Albany that cost almost $72 million. The documents show that these properties, purchased by a division of FTX, were to be used as “residence for key employees” of the company. Reuters could not determine who lives in the apartments.

Documents from another beachfront home in Old Fort Bay — a gated community that was once home to a British colonial fort built in the 1700s to protect against pirates — show Bankman-Fried’s parents, Stanford University law professors Joseph and Barbara Bankman. Fried, as signatories. One of the documents, dated June 15, says the property is being used as a “holiday home.”

When asked by Reuters why the couple decided to buy a vacation home in the Bahamas and how it was paid for — whether with cash, a mortgage or a third party such as FTX — a spokeswoman for the professors said only Bankman. and Fried was trying to return the property to FTX.

“Prior to the bankruptcy proceedings, Mr. Bankman and Ms. Fried were trying to return the document to the company and are awaiting further instructions,” the spokesman declined to elaborate.

While FTX and its employees are known to have bought real estate in the Bahamas, where they set up their headquarters last September, property records seen by Reuters show for the first time the extent of their buying spree and the intended use of some of the properties. Real Estate.

FTX, which filed for bankruptcy earlier this month after a rash of customer withdrawals, did not respond to a request for comment. Bankman-Fried did not respond to requests for comment.

Bankman-Fried told Reuters that she shared a house with nine other colleagues. For its employees, he said, FTX provides free meals and service around the island “like an in-house Uber.”

The bankruptcy of FTX, one of the world’s largest cryptocurrency exchanges, left nearly 1 million creditors facing billions of dollars in losses. Reuters reported that Bankman-Fried secretly used $10 billion in client funds to grow its trading business, and at least $1 billion of those deposits disappeared.

In a filing earlier this month in U.S. bankruptcy court for the District of Delaware, FTX’s new CEO John Ray said he understood FTX Group’s corporate funds were being used to “purchase homes and other personal items for employees and consultants.”

Reuters was unable to determine the source of the funds used by FTX and its executives to purchase these properties.

PROPERTY PURCHASES

Reuters examined property records at the Bahamas Registrar General’s Office for FTX, Bankman-Fried, his parents and some of the company’s key executives.

FTX Property Holdings Ltd, a division of FTX, has acquired 15 properties worth approximately $100 million in 2021 and 2022.

His most expensive purchase was a $30 million penthouse in the Albany resort where Tiger Woods hosts an annual golf tournament. Property records for the penthouse, dated March 17, were signed by Ryan Salame, president of FTX Property, and indicated that it was intended as “residence for key employees.”

Salame did not respond to a request for comment.

Other high-end real estate purchases include three condominiums at One Cable Beach on the New Providence waterfront. Records show the condominiums are priced between $950,000 and $2 million and were purchased by former FTX engineering chief Nishad Singh, FTX co-founder Gary Wang and residential Bankman-Fried.

Singh and Wang did not respond to requests for comment.

Two of FTX Property’s real estate properties were earmarked for commercial use – an $8.55 million group of homes that served as FTX’s headquarters, and a 4.95-hectare piece of beachfront land overlooking the blue waters, which was also slated to be converted into office space. crypto exchange.

The headquarters of the FTX is now empty, furniture leaning against some windows. His badge has been removed. The plot of land, which cost $4.5 million, is also vacant.

The guard said the workers had not returned to headquarters since leaving earlier this month.

Reporting by Koh Gui Qing; Edited by Paritosh Bansal and Claudia Parsons

Our standards: Thomson Reuters Trust Principles.



Source link