US Prosecutors Push to Seize Bankman-Fried’s Assets
- US prosecutors claim Bankman-Fried purchased the jets with fraudulent funds.
- Bankman-Fried’s attorney argued that the 31-year-old was simply a businessman whose plans did not work and not the criminal painted by the prosecutors.
- Some of Bankman-Fried’s close associates are expected to take the stands in the coming days.
U.S. prosecutors are working to seize assets belonging to former FTX CEO Sam Bankman-Fried, including two luxury aircraft that Bankman-Fried supposedly owned but never used. Documents submitted by the Department of Justice said the two aircraft—a Bombardier Global 5000 BD-700-1A11 and an Embraer Legacy EMB-135BJ belong to Bankman-Fried.
The aircraft have been subjects of an ownership debate between FTX, the US government, and Island Air Capital, the aviation firm operating the jets. The US government claims both jets should be forfeited since they were purchased with illegal funds while FTX argues that the loans used in the purchase of the aircraft are undocumented. Interestingly, Island Air Capital (IAC), claims it purchased the jets for $15.9 million and $12.5 million using funds provided by FTX.
IAC explained that “the Aircraft Loan was in the form of an unsecured, no-interest loan agreed to in a handshake deal between FTX’s then-CEO Sam Bankman-Fried and IAC’s beneficial owner, Mr. Aranha.”
While that disagreement is being resolved, IAC expressed concerns about who will pay for ongoing maintenance and checks. The aviation firm also claims that in truth no one connected to FTX ever flew on either jet because they were still being refurbished when the exchange filed for bankruptcy.
Today’s news comes days after Bankman-Fried’s trial began in New York on Tuesday. The former crypto mogul is accused of wire fraud, securities fraud, and money laundering in connection with allegedly deceiving FTX clients.
Prosecutors, in their opening statements, claimed Bankman-Fried built his FTX empire on falsehood. However, the defense attorneys said the 31-year-old was simply a young businessman whose plan failed to succeed.
Lawrence has covered some exciting stories in his career as a journalist, he finds blockchain-related stories very intriguing. He believes Web3 will change the world and wants everyone to be a part of it.
