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Bankman-Fried's FTX And Parents Purchased $121 Million Property In Bahamas Property: Reuters

Bankman-Fried's FTX And Parents Purchased $121 Million Property In Bahamas Property: Reuters
According to official property records, Sam Bankman-FTX, Fried's parents, and senior executives of the failed cryptocurrency exchange purchased at least 19 properties in the Bahamas worth nearly $121 million over the last two years.
The majority of FTX's purchases were luxury beachfront homes, including seven condominiums in Albany, an expensive resort community, for nearly $72 million. According to the deeds, these properties, purchased by an FTX unit, were to be used as "residence for key personnel" of the company. Reuters was unable to ascertain who lived in the apartments.
Bankman-parents, Fried's Stanford University law professors Joseph Bankman and Barbara Fried, are listed as signatories on documents for another home with beach access in Old Fort Bay, a gated community that was once home to a British colonial fort built in the 1700s to protect against pirates. According to one of the documents dated June 15, the property will be used as a "vacation home."
When Reuters asked why the couple decided to buy a vacation home in the Bahamas and how it was paid for – whether in cash, with a mortgage, or through a third party such as FTX – a spokesman for the professors only said that Bankman and Fried had been attempting to return the property to FTX.
"Since before the bankruptcy proceedings, Mr. Bankman and Ms. Fried have been seeking to return the deed to the company and are awaiting further instructions," the spokesperson said, declining to elaborate.
While it is well known that FTX and its employees purchased real estate in the Bahamas, where it established its headquarters in September last year, the property records obtained by Reuters reveal for the first time the extent of their purchasing spree as well as the intended use of some of the real estate.
FTX did not respond to a request for comment after declaring bankruptcy earlier this month following a surge in customer withdrawals. Requests for comment were not returned by Bankman-Fried.
Bankman-Fried told Reuters that he shared a house with nine other colleagues. He claimed that FTX provided free meals and a "in-house Uber-like" service around the island for his employees.
The failure of FTX, one of the world's largest cryptocurrency exchanges, has left an estimated 1 million creditors facing billions of dollars in losses. According to Reuters, Bankman-Fried secretly used $10 billion in customer funds to prop up his trading business, with at least $1 billion of those deposits disappearing.
In a filing earlier this month with the District of Delaware bankruptcy court, John Ray, FTX's new CEO, stated that he understood corporate funds of the FTX Group were used to "purchase homes and other personal items for employees and advisors."
Reuters was unable to determine the source of funds used by FTX and its executives to purchase these properties.
For FTX, Bankman-Fried, his parents, and some of the company's key executives, Reuters searched property records at the Bahamas Registrar General's Department.
In 2021 and 2022, FTX Property Holdings Ltd, an FTX subsidiary, purchased 15 properties worth nearly $100 million.
The Albany, a resort where Tiger Woods hosts a golf tournament every year, was the most expensive purchase. The property records for the penthouse, dated March 17, were signed by Ryan Salame, president of FTX Property, and stated that it was intended for "key personnel residence."
No comments from Salame were available.  
Three condominiums at One Cable Beach, a beachfront residence in New Providence, were also purchased. According to records, the condominiums cost between $950,000 and $2 million and were purchased for residential use by Nishad Singh, the former head of engineering at FTX, Gary Wang, an FTX co-founder, and Bankman-Fried.
Two of FTX Property's real estate holdings were designated for commercial use: a $8.55 million cluster of houses that served as FTX's headquarters and a 4.95-acre plot of land on the coast overlooking cyan waters that was also intended to be developed into office space for the cryptocurrency exchange.
The FTX headquarters is now empty, with furniture pushed up against some of the windows.
Its signage has been taken down. The $4.5 million plot of land is also undeveloped.

Christopher J. Mitchell

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