Sunday, July 21, 2024

Shopping with company money?: The founder of FTX bought 19 properties in the Bahamas


Shopping spree with company funds?
FTX founder bought 19 properties in the Bahamas

The bankruptcy of the FTX cryptocurrency trading platform keeps the financial world busy. Meanwhile, more and more details are coming to light. A real estate empire in the Bahamas has grown around the company.

Bankrupt crypto trading platform FTX, the parents of company founder Sam Bankman-Fried, and crypto exchange executives have bought at least 19 properties in the Bahamas worth $121 million in recent years, according to the documents. . According to extracts from the land registry, most of the objects are said to be luxurious beach resorts.

Seven condominiums purchased by a division of FTX for $72 million in the upscale resort town of Albany would serve as homes for key employees. Bankman-Fried had chosen to base his crypto company in the Bahamas. The parents of the FTX founder are listed as buying a home in the gated community of Old Fort Bay. According to the June entries, the property is used as a vacation home. Bankman-Fried’s parents, law professors at Stanford University, did not say whether they bought the house with their own funds or with FTX money.

The couple have been trying to return the home to FTX since it filed for bankruptcy, a spokesman for the parents said. FTX Group is said to have used company funds to finance real estate and other personal effects for employees and consultants, according to new chief executive John Ray, when it filed for bankruptcy.

Cryptocurrency trading venue FTX had $1.24 billion in assets as of November 20. The bankrupt company’s cash flow will drop by $20 million to $459 million in December, according to the bankruptcy filing. FTX says it owes almost $3.1 billion to its top 50 creditors. The top 10 lenders alone would account for about $1.45 billion, according to US court documents released over the weekend.

FTX’s bankruptcy also brings politicians into the picture. The United States House of Representatives is planning a hearing on the matter. In addition to Bankman-Fried, representatives of competitors such as Binance should also be heard. Alarm bells are also ringing in Europe. According to ECB Council Member Pablo Hernández de Cos, the collapse of the FTX cryptocurrency exchange shows the dangers associated with such cryptocurrencies. “We hope that recent events will increase citizens’ awareness of the risks associated with these crypto assets,” said the member of the Governing Council of the European Central Bank (ECB).

Ebenezer Robbins
Ebenezer Robbins
Introvert. Beer guru. Communicator. Travel fanatic. Web advocate. Certified alcohol geek. Tv buff. Subtly charming internet aficionado.

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