U.S. Seeks Court Approval to Sell Private Jets Belonging to Sam Bankman-Fried

The founder of cryptocurrency exchange FTX, Sam Bankman-Fried, is having two private jets sold by the U.S. government as part of an effort to reimburse victims of the bankrupt exchange. The government has filed documents in the Southern District of New York seeking permission to sell the jets, one of which is currently held by Island Air Capital and Capital Peak Aviation in The Bahamas. The filing includes a plan for the Embraer Legacy jet to be flown back to the U.S. and handed over to government custody, with the government covering the costs of maintaining the planes and transporting the Legacy. Bankman-Fried, who is currently incarcerated, has not objected to the sale.
At the same time, Silvergate Bank is facing a class-action lawsuit from FTX users who allege that the bank assisted in fraudulent activities at FTX and Alameda Research. The court has highlighted Silvergate’s role in processing transactions that funneled FTX customer funds to Alameda Research, citing the bank’s incentive to support FTX due to its business model. FTX’s restructuring officer, John Ray, has opposed Bankman-Fried’s legal team’s attempts to reduce his sentencing, stating that FTX was not solvent at the time of bankruptcy and emphasizing the harm suffered by FTX’s victims.