FTX bankruptcy team prepares to sell Bahamian real estate

FTX's debtor reached a global settlement with its Bahamian subsidiary FTX Digital Markets in November last year, agreeing to work together to maximize compensation and coordinate claims. They have now filed an application with the court to dispose of Bahamian real estate in hopes of recovering more funds for creditors.

Preparing to Sell 35 Properties in the Bahamas

According to a report by The Block, the bankruptcy team of FTX has filed documents with the court to prepare for the sale of 35 properties in the Bahamas, including the luxury Orchid Penthouse where former CEO Sam Bankman-Fried resided with his close allies Gary Wang, Nishad Singh, and Caroline Ellison.

Lawyers for FTX stated in court documents that the sale price of the properties must reach at least 80% of the estimated price by the appointed broker, with any sale exceeding $5 million to be reported to the lawyers of the U.S. trustee creditors committee and all legitimate claimants of the listed properties. The proceeds from the sales will be used in full to distribute to the pool of funds for FTX clients. Following the exchange's bankruptcy announcement in November 2022, the shortfall owed to its former users amounts to as much as $9 billion.

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As previously reported, FTX founder SBF and subsidiary co-CEO Ryan Salame spent $256.3 million to acquire and control 35 properties in the Bahamas. It is believed that the disposal of these properties can help recover a significant amount of funds for the creditors.