The bankruptcy of the crypto trading platform FTX is keeping the financial world busy. Meanwhile, more and more details are coming to light. A real estate empire has grown up around the company in the Bahamas.
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 the past few years, according to documents. According to the extracts from the land register, most of the objects are said to be luxurious beach resorts.
Seven condos acquired by an FTX division for $72 million in the luxury resort town of Albany would serve as homes for key employees. Bankman-Fried had chosen the headquarters of his crypto company in the Bahamas. The parents of the FTX founder are listed as buyers of a house in the gated community of Old Fort Bay. According to entries from June, the property is used as a holiday home. Bankman-Fried’s parents, law professors at Stanford University, would not say whether they bought the house with their own funds or with FTX money.
The couple have been trying to return the house to FTX since filing for bankruptcy, a spokesman for the parents said. The FTX Group is said to have used company funds to finance real estate and other personal effects for employees and consultants, according to new CEO John Ray when filing for bankruptcy.
Crypto trading venue FTX had $1.24 billion in assets as of Nov. 20. According to the bankruptcy filing, the company’s cash flow will fall by $20 million to $459 million in December. FTX says it owes nearly $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.
The FTX bankruptcy also gets politicians on the scene. The US House of Representatives is planning a hearing on the issue. 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 Hernandez de Cos, the collapse of the crypto exchange FTX shows the dangers associated with such cryptocurrencies. “We hope that the recent events will make citizens more aware of the risks associated with these crypto assets,” said the European Central Bank (ECB) Governing Council member.