FTX Liquidators Ready To Sell Bankman-Fried’s $30M Penthouse And Bahamas Real Estate

In
the
wake
of
the
collapse
of
FTX,
the
once
prominent
crypto
exchange
led
by
Sam
Bankman-Fried,
the
luxurious
real
estate
holdings
acquired
by
the
company
will
be
put
up
for
sale. 

According
to
a
Bloomberg


report,
the
liquidators
overseeing
FTX’s
assets
are
preparing
to
sell
off
the
properties
acquired
during
the
cryptocurrency
exchange’s
glory
days
before
its
downfall
in
late
2022. 

FTX’s
Risky
Real
Estate
Play

The
$30
million
Orchid
building
Penthouse
in
the
Bahamas,
where
the
now-convicted
Bankman-Fried
lived
and
worked
with
his
team
until
FTX’s
collapse,
is
the
centerpiece
of
the
real
estate
holdings
now
up
for
sale.
But
industry
experts
say
FTX
may
have
overpaid
for
the
properties,
complicating
the
prospects
of
breaking
even. 

Real
estate
brokers
and
developers
point
out
that
FTX’s
acquisitions
contributed
to
an
inflated
market,
reportedly
analogous
to
the
volatility
of
the
cryptocurrency
world
during
that
time.
Despite
the
recovery
of
FTX’s


cryptocurrency
investments,
the
same
may
not
be
true
for
its
real
estate
play
in
the
Bahamas.

Following
the
collapse,
former
FTX
CEO

Ryan
Salame
and
other
key
figures
within
the
company
spent
$255
million
on
properties
across
New
Providence
Island. 

These
properties
include
52
condos,
offices,
and
parcels
of
land
concentrated
around
luxury
developments
like
Albany.
According
to
Bloomberg,
Albany’s
allure,
known
for
its
exclusivity
and
amenities
catering
to
the
super-rich,
attracted
FTX’s
top
executives,
who
sought
to
establish
a
presence
in
this
gated
community. 

However,
questions
arise
regarding
the
potential
overpayment
for
these
properties,
especially
considering
the
current
market
conditions.

Potential
Profitability
Impact

While
FTX
managed
to
recover
a
significant
portion
of
the


funds
lost

during
its
collapse,
the
real
estate
holdings
present
a
more
nuanced
challenge.
The
liquidators
overseeing
FTX’s
assets
in
the
Bahamas
are
expected
to
initiate
the
sales
process
soon.
However,
brokers
express
doubts
about
achieving
the
desired
prices
for
the
properties. 

The
luxury
real
estate
market
in
the
Bahamas
experienced
a
15%
price
surge
the
previous
year,
but
the
exchange’s
specific
purchases
may
not
yield
the
expected
returns.
Factors
such
as
taxes
and
fees,
coupled
with
concerns
of
overpayment,
may
impact
the
profitability
of
the
sales.

Earlier
this
year,
PwC,
the
consulting
firm
appointed
as
the
liquidator
for
the
firm’s
assets
in
the
Bahamas,
sought
proposals
from
real
estate
brokers
to
market
and
sell
the
properties
acquired
by


Bankman-Fried

and
his
team. 

The
sales
process
is
anticipated
to
commence
in
the
coming
months,
with
brokers
expecting
a
challenging
environment
for
achieving
optimal
returns. 

While
the
exact
appraised
values
of
the
FTX
properties
remain
undisclosed,
Bahamians
have
a
consensus
that
the
sales
would
help
move
past
the
Bankman-Fried
saga
and
allow
the
country
to
focus
on
its
forward
progress.

Meanwhile,
Sam
Bankman-Fried
has
been
sentenced
to
25
years
in
prison
and
was
recently


transferred

to
a
temporary
detention
center
in
Oklahoma.
However,
Bankman-Fried
is
seeking
a
different
outcome,
hoping
for
a
reduction
in
his
sentence
by
officially
filing
an
appeal
of
the
conviction. 

Currently,
the
defunct
exchange’s
native
token,
FTT,
has
experienced
over
a
month
of
sideways
price
action,
resulting
in
a
current
trading
price
of
$1.60. 

Featured
image
from
Shutterstock,
chart
from
TradingView.com