US Government to Sell Sam Bankman-Fried’s Private Jets in Order to Compensate FTX Victims
The U.S. government is taking a bold step to settle the aftermath of a failed cryptocurrency exchange by selling two luxurious private jets owned by Sam Bankman-Fried, the mastermind behind FTX. This intriguing development is part of a larger effort to recover losses for the victims affected by the exchange’s collapse.
On March 22, documents filed in the Southern District of New York revealed that the U.S. government has requested permission to sell the two airplanes. The request involves Island Air Capital and Capital Peak Aviation, who currently possess one of the jets, an Embraer Legacy, in The Bahamas.
According to the terms outlined in the filing, the Embraer Legacy will be flown back to the United States and handed over to government custody. The government has also agreed to cover the costs of maintaining both planes before their seizure and the transportation expenses for returning the Legacy to the U.S.
This move aims to facilitate the sale of the planes, in accordance with federal rules on asset forfeiture. Bankman-Fried, who is currently in jail, has not objected to the proposed agreement.
In addition to this, Silvergate Bank is facing a class-action lawsuit from FTX users who allege that the bank was involved in fraudulent activities at FTX and Alameda Research. The court has highlighted Silvergate’s crucial role in processing transactions that directed FTX customer funds to Alameda Research, pointing out the bank’s incentive to support FTX and Alameda due to its business model centered around adopting the FTX platform.
Meanwhile, John Ray, FTX’s restructuring officer, has taken a stand against Bankman-Fried’s legal team’s attempts to reduce his sentencing. In a statement to the court, Ray refuted the defense’s claims about FTX’s solvency during bankruptcy and the alleged absence of financial loss to customers. He emphasized the harm and ongoing suffering of FTX’s victims, arguing against the leniency sought by Bankman-Fried’s lawyers.
It remains to be seen whether the sale of these jets will be sufficient to compensate the victims of FTX.