According to multiple reports, FTX and its executives went on a real-estate buying spree across the Bahamas in the last two years. The company and its associated stakeholders apparently purchased over $300 million worth of real estate across the country since 2020, even though they didn’t have enough funds to cover their liabilities.
The exchange’s former CEO Sam Bankman-Fried and its other senior executives apparently bought at least 19 luxurious properties in the Bahamas in the past two years. What’s more shocking is that SBF bought those properties under his parent’s name, allegedly using company funds.
From luxury penthouses to resorts, FTX had it all
According to the investigation by Reuters, FTX bought seven luxury penthouse condominiums in a luxury resort called Albany. The costs accumulated to $72 million, which were billed as company spending. The other 19 properties scattered across the island cost over $121 million.
The purchase agreements and deeds of these properties labelled them as “residences for key personnel”. As recent audits show that the company didn’t have nearly enough funds to cover all user withdrawals, it was apparent that these funds might have been directly taken from the customer assets.
The properties in the Albany resorts were the most expensive real-estate deal, and the documents were signed and approved by the exchanges president of property, Ryan Salame. More details showed that the company’s co-founder Gary Wang, its head of engineering Nishad Singh, and SBF purchased three luxury apartments at One Cable Beach. They also bought a joint beachfront residence in New Providence.
SBF bought multiple properties under his parent’s name
Reports also showed that SBF’s parents bought a property in Old Fron Bay, which was built in the 1700s. The property is a luxurious residence with open beach access, and it was to be used as a ‘vacation home’. SBF’s parents are law professors at Standford University. Their predicted income level would not have been sufficient to purchase such expensive properties upfront.
The legal representative and spokesman for SBF’s parents stated that the couple had been trying to return this property to FTX before the bankruptcy proceedings. The company’s new CEO John Ray relieved in a court filing that SBF was actively engaged in purchasing personal properties and items for employees and advisors using corporate funds.
This whole saga has left a significant mark on the entire crypto space, and users are now thinking twice about trusting their funds with centralized exchanges.
Source: https://www.cryptopolitan.com/did-ftx-use-customer-funds-to-buy-properties/