The bankruptcy liquidation team of bankrupt cryptocurrency exchange FTX 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 properties 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 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 had lived together.
FTX’s lawyer stated that the sale price of the properties must reach at least 80% of the specified broker’s valuation. Any property sold for more than $5 million should be reported to the US trustee, the committee’s attorney, and interested parties who have legitimate claims to the listed properties.
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 properties will be used to repay FTX customers. FTX’s previous reports showed that FTX owes a total of $8.7 billion to its users.
The FTX bankruptcy liquidation team announced in December last year that it had reached a global settlement agreement with FTX’s Bahamian subsidiary, FTX Digital Markets. The agreement plans to pool assets from both sides to distribute funds to compensate customers more fairly.
FTX’s previous compensation plan proposed by the liquidators was heavily criticized. Previously, on December 26 last year, FTX submitted a modified reorganization plan to the court, hoping to calculate the claim amount of customers’ cryptocurrency assets based on the US dollar. The plan sought to estimate the “fair and reasonable” value as of the bankruptcy date, November 11, 2022, immediately triggering anger from creditors.
Because the fair and reasonable values of the main cryptocurrencies in the application documents are as follows:
BTC: $16,871, current price: $46,460, an increase of 175.9%
ETH: $1,258, current price: $2,616, an increase of 107.77%
SOL: $16, current price: $100, an increase of 525%
AVAX: $14, current price: $38, an increase of 171.43%
All parties involved in the bankruptcy case must file objections by January 11 and a hearing on the matter is scheduled for January 25.
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