Sam Bankman-Fried's Luxury Jets Under Threat Amid Fraud Allegations & FTX's Collapse
Summary:
The United States Department of Justice (DOJ) might seize two luxury jets owned by Sam Bankman-Fried (SBF) based on charges in a recent indictment, leading to a dispute over ownership involving SBF's former cryptocurrency exchange FTX and aviation companies. The government alleges the jets were bought with fraudulent funds. SBF is currently on trial for fraud and criminal charges related to FTX's collapse in 2022.
The United States Department of Justice (DOJ) confirmed on October 4 that two high-end jets owned by Sam Bankman-Fried (SBF) could be seized. This is due to infractions detailed in charges from a 22 Cr. 673 (LAK) indictment against SBF. The aircraft at risk include an Embraer Legacy and a Bombardier Global model. The current ownership of these jets, which involve SBF's defunct cryptocurrency exchange FTX and aviation firms Island Air Capital (IAC), is at dispute. Filings at the Delaware Bankruptcy Court on September 21 revealed the discord. The government alleges the planes were acquired with fraudulently obtained funds, while FTX asserts there isn't documentation for the loans that financed the planes. In December 2022, a lawsuit was filed against SBF, FTX, and Alameda Research by the U.S Commodity Futures Trading Commission (CFTC). The lawsuit points fingers at them for violating the Commodity Exchange Act, with claims from the CFTC that SBF used FTX customer funds for various private expenses, including these jets.
Bankman-Fried is currently standing trial, indicted on criminal and fraud charges pertaining to the collapse of FTX in November 2022. SBF has entered a plea of 'not guilty' to all allegations being levelled at him, with Judge Lewis Kaplan presiding. The trial kicked off on October 3, with jury selection and opening statements by prosecution and defense on the ensuing day, October 4. Initially, the DOJ painted a picture of Bankman-Fried purposefully swindling customers and investors to amass wealth and enlarge his enterprise, whereas the defense counseled that SBF was merely a young businessman, whose ventures "didn't work out". The trial resumes on October 5. Keep an eye on Cointelegraph as they cover the trial from the ground in New York, providing live updates.
Published At
10/5/2023 11:45:00 AM
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