"US Court Refuses to Approve!" Bahamian Government Attempts to Seize SBF Real Estate, Potential Conflict with US Bankruptcy Protection
CNBC reported that according to local lawyers in the Bahamas, the Bahamian government is seeking to seize the Bahamas real estate owned by FTX founder SBF and subsidiary co-CEO Ryan Salame, who spent $256.3 million to acquire and control 35 properties in the Bahamas. This move could potentially conflict with the bankruptcy protection proceedings of FTX in the United States. Previously, the lawyer handling the FTX bankruptcy reorganization, as well as FTX CEO John J. Ray, filed a motion in a Delaware court in the United States requesting the judge to "prohibit any person or government entity in the world from seizing or obtaining funds from the FTX group."
CNBC stated that the small island in the Bahamas referred to as home by SBF cost millions of dollars; FTX Holdings spent over $143 million to purchase at least 15 properties, with the most notable two properties valued at $30 million and $21.3 million respectively. The headquarters building under development, Veridian Corporate Center, also cost over $25 million.
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Bahamas Government: Does Not Recognize Local Companies' Bankruptcy Proceedings Abroad
A Bahamian lawyer stated that the U.S. judge should dismiss the bankruptcy proceedings of FTX, as all of FTX's assets are in the Bahamas, and the country's law does not recognize Bahamian companies' bankruptcy proceedings in other countries. The Bahamian regulators have the authority to control FTX's Bahamian real estate.
SBF Arrested, Pending Extradition Proceedings
Earlier on 12/13, Bahamas Attorney General Ryan Pinder stated in a declaration that SBF has been arrested under extradition laws due to criminal charges filed by the U.S. Department of Justice. Following a formal extradition request by the U.S., proceedings will be carried out in accordance with extradition obligations.
Learn More About FTX Bankruptcy Proceedings
Asset recovery for the bankrupt company has been discussed in past podcasts. In fact, each country can handle the FTX case based on its ability to seize assets: