The bankruptcy liquidation team of FTX, a bankrupt cryptocurrency exchange, submitted documents to the court on Tuesday, seeking to sell 35 real estate properties owned by FTX in the Bahamas, including the luxury apartment of FTX founder SBF. The proceeds from the sale of the real estate will be used to repay FTX customers.
According to the documents submitted to the court on Tuesday, the bankruptcy liquidation team of FTX plans to sell the 35 real estate properties owned by FTX in the Bahamas. Previously, most of FTX’s employees and senior management had worked in the Bahamas until FTX declared bankruptcy in November 2022.
It is understood that the real estate properties that the FTX bankruptcy liquidation team wants to sell include the infamous luxury apartment, Orchid Penthouse, where FTX founder Sam Bankman-Fried (SBF) and FTX executives Gary Wang, Nishad Singh, and Caroline Ellison have lived together.
FTX’s lawyer stated that the selling price of the real estate must reach at least 80% of the appraised value determined by the designated broker. Any real estate sold for over $5 million should be reported to the US trustee, the committee’s attorney, and interested parties who have legitimate claims to the listed real estate.
According to documents from last year, FTX once owned 38 real estate properties in the Bahamas, valued at $199 million. The proceeds from the sale of the real estate will be used to repay FTX customers, as FTX’s previous reports showed that FTX owed a total of $8.7 billion to its users.
In December last year, the FTX bankruptcy liquidation team announced that it had reached a global settlement agreement with FTX’s Bahamian subsidiary, FTX Digital Markets. The agreement plans to consolidate assets from both sides in order to distribute compensation funds to customers more fairly.
FTX’s previous compensation plan proposed by the liquidators was criticized. Previously, on December 26 last year, FTX submitted a revised reorganization plan to the court, hoping to calculate the claim amount of customers’ cryptocurrency assets based on the US dollar. It sought to estimate the “fair and reasonable” value as of the bankruptcy date, November 11, 2022, which immediately sparked outrage among creditors.
Because the fair and reasonable values of the main cryptocurrencies were as follows in the application documents:
BTC: $16,871, current price: $46,460, a 175.9% increase
ETH: $1,258, current price: $2,616, a 107.77% increase
SOL: $16, current price: $100, a 525% increase
AVAX: $14, current price: $38, a 171.43% increase
All parties involved in the bankruptcy case must file objections by January 11 and a hearing on this matter is scheduled for January 25.
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