From Crypto King’s Perch to Auction Block: FTX Bahamas Penthouse for Sale

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From Crypto King's Perch to Auction Block: FTX Bahamas Penthouse for Sale
  • FTX’s $30 million Orchid penthouse is now up for sale.
  • FTX overpaid for its Bahamian properties, creating a bubble market.
  • Liquidation hopes to recover losses for FTX creditors.

A lavish penthouse atop the Orchid building in Nassau, Bahamas, is set for sale as part of the ongoing liquidation of assets belonging to bankrupt cryptocurrency exchange FTX. This opulent property, once the headquarters of FTX co-founder Sam Bankman-Fried, stands as a symbol of the company’s meteoric rise and swift downfall.

Real estate experts believe FTX overpaid for its Bahamian properties, creating a bubble market. Nassau’s developer, Jason Kinsale, and real estate appraiser, Robin Brownrigg, anticipate challenges in recouping the original investments. For example, a similar apartment in the same building recently listed for $29 million, indicating losses after taxes and fees.

FTX’s liquidation involves $255 million worth of properties, including 52 apartments and lots in luxury developments like Albany, a high-end enclave home to celebrities like Tiger Woods and Justin Timberlake. FTX’s real estate spree included $140 million for 15 apartments and a villa in Albany alone, with the Orchid penthouse as its crown jewel.

Despite rising luxury real estate prices in the Bahamas, agents are skeptical about achieving the initial purchase prices. Earlier assessments, like the $8.8 million Honeycomb property now valued at $5.9 million, suggest significant overpayments.

FTX’s asset liquidation, managed by PwC, aims to recover losses for creditors. As sales commence, the Bahamian community looks forward to moving past the Bankman-Fried saga, with hopes of a fair market resolution for these high-profile properties.

According to the Bureau of Prisons website, the FTX co-founder is now at the Federal Transfer Center in Oklahoma City. Bankman-Fried, who was sentenced to 25 years in prison by Judge Lewis Kaplan, had been preparing for his trial from the Metropolitan Detention Center in Brooklyn, New York. 

Judge Kaplan said on Wednesday that he stayed in Brooklyn to facilitate access to his appellate counsel. Mark Botnick, Bankman-Fried’s spokesman, expressed hope that the Bureau of Prisons would follow the court’s recommendation to ensure proper legal access. Bankman-Fried had requested to remain at MDC, despite his complaints about the facility last year. 

He may eventually serve the rest of his sentence at a prison closer to his family in California. The Oklahoma facility is designated as a transfer center and is intended to hold inmates for four-to-six weeks.

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