- The US government is seeking court approval to sell two luxury private jets previously owned by Sam Bankman-Fried, valued at $121 million and $38 million, before they lose value.
- Prosecutors argue selling the jets quickly provides funds to compensate victims of FTX’s collapse, with Bankman-Fried not objecting to the proposed sale.
- If approved, the US Marshals Service will sell the jets on an expedited timeline, using the proceeds first to cover costs and then to pay back FTX creditors.
The US government has filed a court order to sell two private jets previously owned by Sam Bankman-Fried, the disgraced former CEO of the collapsed cryptocurrency exchange FTX. Prosecutors argue that selling the luxury aircraft, a Bombardier Global 6000 and an Embraer Legacy 650, before the conclusion of forfeiture proceedings is necessary to prevent their loss of value over time.
Details of the Private Jets
The Bombardier Global 6000 business jet, which has already been seized by authorities, cost $121 million. The Embraer Legacy 650, currently still in Bankman-Fried’s possession pending transport to a Florida airport, cost $38 million. Prosecutors estimate total maintenance and transport costs could amount to $18.2 million.
Rational for Expedited Sale
Damian Williams, the US Attorney leading the case, argues that selling the planes quickly at current market prices prevents depreciation and provides funds that could be used to compensate victims of FTX‘s collapse. The sale requires court approval which prosecutors are currently seeking.
Bankman-Fried’s Response
Sam Bankman-Fried, who was convicted on fraud charges in November 2022, did not object to the proposed sale of the aircraft. He awaits sentencing on March 28th and faces up to 50 years in prison. The luxury jets are just some of Bankman-Fried’s assets subject to forfeiture to pay back investors and creditors.
Next Steps
If approved by the court, the US Marshals Service will transport the Embraer jet to Florida and begin sale proceedings for both aircraft on an expedited timeline. The proceeds would be used first to compensate the government for costs incurred, with remaining funds going to FTX bankruptcy creditors.
