Sat. Apr 20th, 2024
alert-–-sam-bankman-fried’s-mammoth-$222million-bahamas-real-estate-portfolio-will-hit-the-market-after-shamed-crypto-boss-was-sentenced-to-25-years-in-jail-for-ftx-fraudAlert – Sam Bankman-Fried’s mammoth $222MILLION Bahamas real estate portfolio will hit the market after shamed crypto boss was sentenced to 25 years in jail for FTX fraud

Sam Bankman-Fried’s sprawling $222 million Bahamas real estate portfolio, much of which was bought with stolen FTX customer funds, is set to hit the market. 

The former FTX CEO was sentenced to 25 years in prison Thursday for stealing $8 billion worth of customer deposits, and throughout yesterday’s hearing, Judge Lewis Kaplan scolded Bankman-Fried for the way he spent other people’s money. 

He said: ‘Mr. Bankman-Fried knew for a protracted period that Alameda was spending large sums of FTX customer funds on risky investments, political contributions, Bahamas real estate and other things.’

The disgraced crypto boss’ impressive Bahamas portfolio could be listed as early as next week, Realtor.com reported.

A map shows some of the known Bahamas properties tied to FTX, its founder Sam Bankman-Fried, and others in his inner circle. Attorneys for FTX said that the company spent $300 million buying properties in the Bahamas

A map shows some of the known Bahamas properties tied to FTX, its founder Sam Bankman-Fried, and others in his inner circle. Attorneys for FTX said that the company spent $300 million buying properties in the Bahamas

The Orchid, a building part of the luxury Albany resort, overlooking a superyacht marina

The Orchid, a building part of the luxury Albany resort, overlooking a superyacht marina

Bankman-Fried lived in the Orchid penthouse with ex-girlfriend and Alameda Research CEO Caroline Ellison

Bankman-Fried lived in the Orchid penthouse with ex-girlfriend and Alameda Research CEO Caroline Ellison 

A view of the the $40 million, 12,000 square foot Orchid penthouse boasting five bedrooms and a luxurious balcony

A view of the the $40 million, 12,000 square foot Orchid penthouse boasting five bedrooms and a luxurious balcony

The FTX estate led by John J. Ray III successfully clawed back the over 30 properties and a Delaware bankruptcy judge approved the sale back in January 2024. 

The waterfront Albany resort comprising nine buildings was the crown jewel of Bankman-Fried’s real estate empire, and the 15 apartment units he used to own are valued at $151 million. 

As part of that, the $40 million Orchid penthouse boasting five bedrooms and a balcony overlooking the community’s superyacht marina will also go on sale.

Bankman-Fried lived in the Orchid penthouse with ex-girlfriend Caroline Ellison and other roommates who worked at the doomed crypto exchange, including FTX co-founder Gary Wang and FTX head of engineering Nishad Singh. 

Ellison, Wang and Singh all pleaded guilty to their involvement in the FTX fraud and were the government’s star witnesses at Bankman-Fried’s trial in October 2023.

The interior of the Orchid penthouse apartment, where Bankman-Fried lived with Ellison, FTX co-founder Gary Wang, FTX head of engineering Nishad Singh and other company insiders

The interior of the Orchid penthouse apartment, where Bankman-Fried lived with Ellison, FTX co-founder Gary Wang, FTX head of engineering Nishad Singh and other company insiders

The Orchid balcony features a pool, and the property could be sold for around $40 million

The Orchid balcony features a pool, and the property could be sold for around $40 million

The Orchid balcony at night, with the interior of the unit in view

The Orchid balcony at night, with the interior of the unit in view

The other Albany properties going on sale include two other condos in Orchid building; three units in the Charles building; one unit each in the Choral, Cube, and Gemini buildings; and three units each in Honeycomb and Tetris buildings.

Also hitting the market are four condos at the One Cable Beach Development, residences that had been purchased by Bankman-Fried, Singh and Wang, again with FTX customer funds.

An investigative document prepared by the FTX debtors in June 2023 revealed that the Bahamas properties were bought from late 2021 all the way up to November 2022, the month FTX collapsed.

In fact, a unit at the Albany Charles was purchased for over $10 million on November 10, 2022, a day before FTX filed for bankruptcy.

Albany, an exclusive gated community sprawling over 600 acres, is owned in part by Tiger Woods and Justin Timberlake

Albany, an exclusive gated community sprawling over 600 acres, is owned in part by Tiger Woods and Justin Timberlake

FTX reportedly bought seven apartments for its employees at the Albany Bahamas Resort, costing

FTX purchased seven condominiums in the expensive Albany resort community, costing almost $72 million, records show

FTX purchased seven condominiums in the Albany resort, costing around $72 million

FTX purchased seven condominiums in the expensive Albany resort community, costing almost $72 million, records show

A neighbor told DailyMail.com that FTX turned Albany into a playground for its employees, paying to operate a 24/7 restaurant just for company staff, so they could eat and drink around the clock

A neighbor told DailyMail.com that FTX turned Albany into a playground for its employees, paying to operate a 24/7 restaurant just for company staff, so they could eat and drink around the clock

$16 million: The entrance to Old Fort Bay, the exclusive gated community where records show Bankman-Fried's parents owned a 'vacation home'

$16 million: The entrance to Old Fort Bay, the exclusive gated community where records show Bankman-Fried’s parents owned a ‘vacation home’

Stanford law professor Barbara Fried is Sam Bankman-Fried's mother

Stanford law professor Joseph Bankman is Sam Bankman-Fried's father

Sam Bankman-Fried’s parents, law professors Barbara Frieds and Joseph Bankman, said they had been trying to return the property to FTX since before the company entered bankruptcy

The FTX estate still hasn’t gotten the go ahead from the court to sell the $16.4 million vacation home that was deeded to Joseph Bankman and Barbara Fried, the parents of the convicted fraudster.

That 30,000 square feet luxury home has beach views and is located at a private gated community called Old Fort Bay.

FTX commercial property worth $25 million is also set to be unloaded by the liquidators. This includes the Veridian Corporate Center, Pineapple House on Western Road, Ocean Terrace on West Bay Street, and a West Bay property where the failed crypto exchange was planning to build its headquarters, Realtor.com reported.

Bankman-Fried’s living situation is due for a big downgrade after living the high life in New Providence, the most populous island in the Bahamas and home to its capital city, Nassau.  

Judge Kaplan recommended that Bankman-Fried serve his time in a low-to medium-security facility but the ultimate determination will be up to the federal Bureau of Prisons.

Christopher Zoukis, an federal prisons expert, told the DailyMail.com that he expects Bankman-Fried to end up at a West Coast prison such as FCI Herlong or Mendota.

Pictured: FCI Herlong in California, which could where Bankman-Fried is sentenced to live out his coming years. One of Herlong's most notable inmates, rapper B.G., was released from the prison last year after serving 12 years of his 14-year sentence

FCI Herlong in California, which could where Bankman-Fried is sentenced to live out his coming years. One of Herlong’s most notable inmates, rapper B.G., was released from the prison last year after serving 12 years of his 14-year sentence

FCI Herlong, another possible destination for Bankman-Fried

FCI Herlong, another possible destination for Bankman-Fried

FCI Mendota holds 950 inmates inside the medium-security facility

FCI Mendota holds 950 inmates inside the medium-security facility

One of Herlong’s most notable inmates, rapper B.G., was released from the prison last year after serving 12 years of his 14-year sentence, the Rolling Stone reported.

Herlong also used to have a decent reputation as a humane prison – but has since backslid into an unsafe place for sex offenders, LGBTQ individuals and informants, according to Puck News.

As for Mendota, in January 2023, the Environmental Protection Agency launched an investigation into its alleged improper storage of hazardous materials, as reported by the Fresno Bee.

The federal prison also made headlines last year after a 34-year-old inmate died at Mendota in December.

In June 2023, a manhunt was launched after a missing 42-year-old inmate walked out from the FCI Mendota satellite camp.

Medium security prisons are known for having strengthened perimeters and have a high staff-to-inmate ratio. The prisons are often very crowded, with small cells and steel bunk beds bolted to the walls.

At FCI Mendota, inmates live in two-person cells, and prisoners have access to the library – as well as having a commissary to buy snacks, ice cream, and electronics.

Now that he’s been sentenced to prison, Bankman-Fried will soon learn where he is spending the next two decades of his life 

Inmates at the California jail can play softball, soccer, football, tennis, as well as enjoy the gym where exercise classes include spin, yoga, and aerobics.

People incarcerated at FCI Herlong live in two- or three-person cells. Inmates can use the jail gym, which has a basketball court and multiple workout machines.

They can also enjoy workout courses, music classes, art and craft programs while serving their prison sentences at Herlong.

FCI Lompoc is also a possible destination for Bankman-Fried. Lompoc used to be a medium-security prison but has since transitioned to serve only low-security inmates.

Lompoc also isn’t without controversy. Federal inmates at the facility filed a class action lawsuit against its prison officials for not adequately tamping down the outbreak of COVID-19. A settlement was reached in the summer of 2022.

Photos from inside that facility show rows of bunk-beds that are used to house criminals in barrack-style units.

Lompoc houses 879 inmates and was once home to fashion designer Mossimo Giannulli who was convicted as part of the college admissions scandal along with his wife, actress Lori Loughlin.