A townhouse in Capitol Hill connected to the defunct cryptocurrency platform Futures Exchange (FTX) and its former CEO, Sam Bankman-Fried (SBF), has been listed on “realtor.com.” It indicates changing ownership as realtor.com carries a “contingent” label on this property as the offer is accepted.
Yet, the finalization of the deal is still pending. The “would-be” owner’s identity is not yet disclosed. The website is based in Santa Clara, California, and is the second most-seen real estate listing website in the United States as of 2021, having over 100 Million monthly active users.
Bahama-based FTX’s collapse began in 2022 and was estimated at around $32 Billion when the exchange filed bankruptcy on November 11, 2023. Approximately $8 Billion of customers’ funds went missing.
Collapse of FTX in November 2022
FTX’s leaked balance sheet, dated November 10, was published by one of the worldʼs leading global business publications on November 12, showing nearly $9 Billion in liabilities and insufficient cryptocurrency assets to cover the gap. The balance figure was negative $8 Billion. The ill-managed balance sheet showed poor entries linked to Alameda Research (the trading arm of FTX).
Alameda Research, co-founded by Sam Bankman-Fried and Tara Mac Aulay, was a cryptocurrency trading firm operating since September 2017.
FTX’s collapse began with the leaked balance sheet. Because of the mishandled and blurred funds, a leading crypto exchange announced selling all its FTT (FTX’s tokens).
A rapid drop in FTT value prompted FTX customers to withdraw their funds. However, other Voyager Digital and Celsius Network collapses had already troubled customers about their investments. The crypto market witnessed mass withdrawals, which caused FTX to lose Billions of dollars.
SBF called Alameda Research to sell assets to cover the losses.
FTX stopped customers’ withdrawal on November 8 and deprived them of withdrawals from their accounts. The platform removed the online withdrawal option, making thousands of people tense about losing their earnings.
The company on November 11 filed for bankruptcy when it could not pay the $8 Billion on customers’ demand. FTX cracked due to mishandled and ill-managed funds, lack of liquidity, and significant investor withdrawals.
One of the leading crypto exchanges announced purchasing FTX to contain a massive market crash but quickly bailed out of the deal as more and more news reports of mishandled customer funds were identified.
The Property on Capitol Hills
Guarding Against Pandemics was a non-profit firm founded by SBF’s brother, Gabriel Bankman Fried (GBF), that owned this townhouse. Before this year, the property had disappeared from listings amidst accusations of being acquired with embezzled FTX user funds.
The townhouse was listed at $3 Million initially. The available photos of the property exhibit no noticeable blockchain-inspired or cryptocurrency design features.
FTX’s bankruptcy hearings and proceedings are under Delaware’s district court. Sam Bankman-Fried’s legal battles, involving charges of violations of campaign finance laws, are scheduled for October 2023 and March 2024.
BBC News Report: FTX Accounts Hacked
According to BBC News, around $415 Million (£338m) of crypto has been stolen by hackers from collapsed cryptocurrency exchange FTX. As per FTX’s CEO, around $323 Million was stolen from the exchange’s cross-border chain and $90 Million from its US platform since its bankruptcy filing.
In January 2023, FTX provided added details, stating it had regained $1.7 Billion in cash, $3.5 Billion in liquid cryptocurrency, and $300 Million in liquid securities.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/06/21/ftx-linked-capitol-hill-townhouse-is-out-for-sale-online/