FTX executives spent $256 million on real estate in the Bahamas

Bahhamian lawyers say FTX executives Sam Bankman-Fried and Ryan Salame spent $256.3 million buying and maintaining 35 different properties across New Providence, Bahamas.

Now, Bahamas regulators are trying to get assets back from FTX’s bankruptcy protection proceedings in the United States, telling a Delaware federal bankruptcy judge that it’s okay to allow the assets to be administered. in US courts would be both administratively ineffective and illegal under Bahamas law.

This is the first real look behind the curtain on FTX’s massive real estate spending. Tens of millions of dollars have been spent just to develop the small island that Bankman-Fried calls home, with FTX’s parent company buying at least 15 properties and one vacant lot totaling more than $143 million. dollars.

Two of the largest units at that Albany private development cost $30 million, while another cost $21.3 million.

Bankman-Fried and Salame, the former co-CEOs of the bankrupt crypto exchange, have also invested tens of millions of dollars in their current headquarters building, bringing more than $25 million into China. Veridian business center. FTX breaks ground for new headquarters in April 2022but it has stalled since the exchange filed for bankruptcy in November.

Now, Bahamian managers are fighting to get those assets back. In a filing Monday night, Bahamian lawyers asked a U.S. judge to dismiss chapter 11 proceedings against FTX’s asset subsidiary. Bahamian attorneys told the court that because all assets are in the Bahamas and because “Bahamian law does not permit recognition of foreign bankruptcy proceedings against a Bahamian company,” U.S. bankruptcy proceedings should suspended and Bahamas regulators should be allowed to assume full control of the Bahamian estate process.

The move is likely to provoke opposition from attorneys and FTX US CEO John Ray, who has pledged to maximize resilience for FTX clients in both the US and abroad through restructuring and asset sales. U.S. and Bahamian lawyers argued in court over jurisdiction, with each side crying out to the other.

FTX filed for bankruptcy protection on November 11 after a report from CoinDesk revealed significant anomalies in the balance sheet of sister hedge fund Alameda Research. Binance’s 11-hour rescue ultimately failed, leading to a bank run-out and a sudden liquidity crunch for an exchange once seen as a crypto savior.

The founder of Bankman-Fried is currently in a Bahamian prison, facing unspecified charges by US prosecutors; The indictment will not be sealed on Tuesday. Crisis continues to envelop the entire crypto space. BlockFi filed for bankruptcy in November. Countless exchanges have frozen or halted redemptions and withdrawals. Rumors swirl about which exchanges, if any, will be the next to crash, even as crypto companies release audited evidence of clear reserves to bolster investor confidence. private.