In an effort to settle funds back into the wronged customers, FTX’s bankruptcy estate is auctioning off 35 luxury properties in The Bahamas that include the infamous “Orchid Penthouse” which once housed former CEO Sam Bankman-Fried and his inner circle.
This follows after the $8.7 billion debt that FTX left its users in November 2022 when it collapsed.
A recent court filing details that the proposed sale spans FTX staff and executives’ apartments previously occupied.
Notably, the luxurious Orchid Penthouse where Bankman-Fried once lived together with Gary Wang, Nishad Singh and Caroline Ellison is now put for sale.
For the sake of transparency and gaining the best possible returns, a court order mandates that each property should be marketed at no less than 80% of its value as assessed by the broker.
Sales above $ 5 million also need special notifications to relevant parties, such as the U.S trustee , creditors’ committee counsel and possible claimants.
Sales from these funds will go directly into the pool that is set aside for compensating FTX customers.
This initiative coincides with the December agreement made between FTX’s U.S. as well as Bahamian entities to consolidate assets and handle future distributions later on.
This sale is a major milestone in the FTX story and aims to provide some relief to those affected by the company’s collapse. On the other hand, Bankman-Fried is due to be sentenced for defrauding investors and customers later this month.
Also Read: Sam Bankman-Fried Gears Up for Sentencing with New Legal Team
