In the ongoing legal proceedings against Sam "SBF" Bankman-Fried, prosecutors representing the U.S. government have put forth a proposal for a court order mandating the sale of two private jets while forfeiture proceedings against FTX's former CEO are underway. Filed on March 22 in the U.S. District Court for the Southern District of New York, U.S. Attorney Damian Williams outlined the government's intention to facilitate the sale of the two aircraft associated with FTX and SBF to prevent their depreciation. The request is aimed at safeguarding the value of the assets involved in the case.
The aircraft in question, legacy planes manufactured by Bombardier Global and Embraer, were seized in connection with Bankman-Fried's criminal case, as indicated in prosecutors' arguments from October 2023. The exact valuation of the planes remains undisclosed; however, court documents from October 2023 estimated their costs at $15.9 million and $12.5 million respectively. Prosecutors have proposed to allocate funds from the sales proceeds to cover maintenance and upkeep costs, along with delivery expenses for the Embraer legacy aircraft, amounting to $1.8 million and $183,000 respectively.
The legal process involves collaboration between prosecutors, FTX, and associated parties to expedite the sale of the Embraer legacy aircraft, with an agreement in place to transfer it to a Florida airport for sale under the supervision of the U.S. Marshals Service (USMS). Meanwhile, custody of the Bombardier Global has been assumed by the USMS following a search warrant issued in February 2023, marking progress in the disposition of the assets linked to the case.
The luxury planes represent only a fraction of the assets subject to forfeiture following Bankman-Fried's criminal conviction. A recent filing disclosed various assets, including Robinhood stock, fiat currency, cryptocurrencies held in Binance and Binance.US accounts, and political contributions made by SBF during his tenure as FTX CEO. Bankman-Fried and his legal counsel have expressed no objections to the sale of the aircraft, indicating cooperation in the disposition of assets amid the legal proceedings.
Bankman-Fried, convicted of seven felonies in November 2023, is presently incarcerated awaiting a sentencing hearing scheduled for March 28. While prosecutors have recommended a substantial prison term ranging from 40 to 50 years, Bankman-Fried's defense team has proposed a significantly shorter sentence of 6.5 years, leaving the ultimate decision to the judge overseeing the case.
