In a dramatic turn of events, the United States government is poised to put up for auction two luxurious private jets associated with Sam Bankman-Fried, the former CEO of the now-defunct cryptocurrency exchange FTX. The jets once intended for high-flying executive travel, now find themselves embroiled in legal proceedings following FTX’s collapse.
The revelation came to light when Judge Lewis Kaplan received a letter from U.S. Attorney Damian Williams, outlining the government’s intention to sell the multi-million-dollar jets. The court document detailed the proposed sale of a Bombardier Global 5000 BD-700-1A11 and an Embraer Legacy EMB-135BJ, both linked to Bankman-Fried.
High Costs and Unfulfilled Upgrades
According to court records, the Bombardier Global 5000 BD-700-1A11 was acquired at a staggering cost of $15.9 million, while the Embraer Legacy EMB-135BJ came with a price tag of approximately $12.5 million. Notably, FTX had initiated upgrades for these jets, including state-of-the-art WiFi and lavish interiors. However, the upgrades remained incomplete as FTX plunged into bankruptcy in November 2022, rendering the jets unused.
The decision to auction the jets follows Bankman-Fried’s conviction on seven charges in November 2023. With the court deliberating on an appropriate sentence for the former FTX chief, prosecutors are exploring avenues to recover funds for affected FTX customers. Hence, the motion to sell Bankman-Fried’s private assets.
Endorsement from FTX Debtors and Stakeholders
The order to sell the jets was reached through an agreement involving FTX debtors, former FTX executive Ryan Salame, and other stakeholders, including Paul Aranha, founder of a Bahamian charter flight company that operated Bankman-Fried’s planes. Notably, Bankman-Fried and his legal team have raised no objections to the order, signaling cooperation with the proceedings.
The letter sent to Judge Kaplan seeks approval for the sale of the airplanes, citing relevant legal provisions. The government aims to obtain authorization for the sale under specific rules governing criminal procedure and asset forfeiture actions.
The impending sale of Bankman-Fried’s jets adds another chapter to the unfolding saga surrounding FTX’s demise. As the crypto community awaits Bankman-Fried’s sentencing on March 28, the fate of his assets remains intertwined with the broader implications of FTX’s downfall.
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