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Records show that FTX acquired several high-priced properties in the Bahamas for vacation, residential and commercial purposes.
Following FTX’s sudden and dramatic crash almost two weeks ago, a paper trail of activities regarding the company’s management has begun to surface. Amid these ongoing developments are reports that the parents of disgraced ex-CEO Sam Bankman-Fried allegedly mismanaged some of the company’s funds. According to Reuters, Bankman-Fried’s parents and FTX senior executives acquired at least 19 properties amounting to almost $121 million in the Bahamas over the last two years. The report further states that the acquired properties were for purposes such as a “vacation home” and a “residence for key personnel.”
Official property records also reveal that most of the acquired FTX Bahamas properties were luxury beachfront homes. These include seven condominiums that cost approximately $72 million in a high-end resort community called Albany. Among these is the single most expensive purchase of the lot, a $30 million penthouse with a deed reportedly signed by FTX property president Ryan Salame on March 17th. Documents show that the fallen crypto exchange intended to house key personnel in these properties.
In addition, the deeds of some of the other expensive parcels of real estate also named Bankman-Fried’s parents as owners of a $16.4 million vacation home. This vacation home is located in an exclusive upscale gated community called Old Fort Bay which also boasts a rich, storied history. According to supporting documents dated June 15th, the residence served to be a vacation home.
Other upscale property purchases include three condominiums at One Cable Beach, which costs up to $2 million. These acquisitions are allegedly attributable to Bankman-Fried, FTX co-founder Gary Wang, and former FTX head of engineering Nishad Singh. The three former high-ranking executives of the bankrupt exchange intended to use the apartments for residential purposes.
FTX Property Holdings Biggest Buyer of Company’s Listed Pricy Bahamas Real Estate Holdings
FTX’s unit FTX Property Holdings reportedly executed most of the purchases, 15 properties worth around $100 million, between 2021 and 2022. However, despite the designated usage of said properties, Reuters could not ascertain who lived in the apartments. Last week, Bankman-Fried revealed to the news outlet that he lived in a house with nine other colleagues. In addition, the embattled former FTX CEO also said that the exchange provided free meals and an in-house mobile service.
Reuters also quizzed an FTX spokesperson on why Bankman-Fried’s parents opted to purchase a vacation home in the Bahamas. The news channel also wanted to know how Joseph Bankman and Barbara Fried executed the purchase. However, the spokesperson declined to state whether the purchase was via cash, mortgage, or third party. Instead, the FTX representative revealed that the couple had been trying to return the questionable purchase to FTX. As the spokesperson put it:
“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.”
Two of FTX Property’s Bahamas properties were earmarked for commercial purposes. These included an $8.55 million group of houses that served as the exchange’s headquarters and a $4.5 million 4.95-acre plot of land.
Following FTX’s collapse, its headquarters and the plot of land lie unoccupied.