US Prosecutors Move to Sell Bankman-Fried's Jets in Forfeiture Case

U.S. prosecutors propose selling two private aircraft linked to former FTX CEO Sam "SBF" Bankman-Fried before the conclusion of the forfeiture proceedings against him. The move aims to prevent devaluation of the planes, valued at over $28 million. The aircraft, a Bombardier Global and an Embraer Legacy, are subject to forfeiture due to their connection to Bankman-Fried's criminal case. The government intends to reimburse up to $1.8 million for maintenance and $183,000 for delivery costs of the Legacy if the sale proceeds allow. Bankman-Fried and his attorney do not object to the aircraft sale.

United States Prosecutors Move to Sell Sam Bankman-Fried's Aircraft Amidst Forfeiture Proceedings

In a significant development in the ongoing legal proceedings against former FTX CEO Sam "SBF" Bankman-Fried, federal prosecutors have filed a motion with the United States District Court for the Southern District of New York requesting an order to sell two private aircraft allegedly connected to Bankman-Fried's criminal activities. The move comes as part of the government's ongoing efforts to secure the forfeiture of assets tied to the FTX collapse.

Interlocutory Sale to Preserve Aircraft Value

According to the motion filed on March 22, 2023, by U.S. Attorney Damian Williams, the government seeks to execute an "interlocutory sale" of the two aircraft in an effort to "prevent their devaluation" while forfeiture proceedings continue. The aircraft in question are a Bombardier Global jet, valued at $15.9 million, and an Embraer Legacy jet, valued at $12.5 million, as per court filings.

The prosecutors argue that the sale is necessary to maintain the value of the aircraft, which are subject to depreciation and other factors that could reduce their worth over time. They intend to reimburse up to $1.8 million for maintenance and upkeep, as well as $183,000 for delivery of the Legacy aircraft, assuming the sale proceeds cover these expenses.

Agreement with FTX

Prosecutors have reached an agreement with FTX and related parties to facilitate the delivery of the Embraer Legacy aircraft to a Florida airport, where the U.S. Marshals Service (USMS) will assume custody and initiate proceedings for its sale. The USMS already has possession of the Bombardier Global aircraft following a warrant executed in February 2023.

Bankman-Fried's Forfeitable Assets

The aircraft represent just a portion of the substantial assets tied to Bankman-Fried that are subject to forfeiture proceedings. In a March filing, the government listed a wide range of assets, including Robinhood stock, U.S. dollars, cryptocurrency accounts, and political contributions made by Bankman-Fried during his tenure as FTX CEO.

Bankman-Fried's Conviction and Imprisonment

Bankman-Fried was convicted on seven felony counts in November 2023 and is currently incarcerated pending a sentencing hearing scheduled for March 28, 2023. Prosecutors have recommended that he be sentenced to between 40 and 50 years in prison, while his attorneys have requested a sentence of 6.5 years.

Conclusion

The government's motion to sell the aircraft marks a significant step in the ongoing forfeiture proceedings related to the FTX collapse. It underscores the government's commitment to recovering assets that may have been obtained through illegal activities and to holding individuals accountable for their crimes. The outcome of the forfeiture proceedings will likely have significant implications for the victims and creditors of FTX.