Sam Bankman-Fried (SBF), founder and CEO of the defunct FTX exchange, is about to suffer another series of major losses.
According to court document sent to the Southern District of New York, his multi-million dollar private jets are about to be lost.
The two private jets in question are identified as a Bombardier Global 5000 BD-700-1A11 and an Embraer Legacy EMB-135BJ.
The Bombardier Global had a hefty price tag of $15.9 million, while the Embraer Legacy cost $12.5 million, bringing the total cost to over $28.5 million.
According to court documents shared online, US Attorney Damian Williams is seeking an injunction to compel SBF to relinquish ownership of these planes due to legal proceedings against him.
During its years of operation, the FTX crypto exchange was located in the Bahamas and SBF bought the multi-million dollar plane to help its movements around the world.
Another court document showed that Paul Aranha, a Bahamian businessman and pilot, bought and operated the planes on behalf of the disgraced cryptocurrency exchange founder.
Aranha performed maintenance, procurement and flights through Trans Islands Airways (TIA), a private charter and flight business he founded in 2012.
The aviation founder stated that his businesses officially began in 2021. Until SBF’s arrest, TIA provided approximately $15 million in private hire services to SBF, FTX executives, employees, partners business, guests, friends and family.
Aranha’s TIA was also contracted for a number of aircraft upgrades following SBF and FTX approval.
According to Aranha’s testimony, SBF requested a state-of-the-art Wi-Fi facility and completely new interiors to suit their preferences.
However, the founder of FTX and Alameda Research never flew any of the private jets due to his arrest in November 2022.
The requested updates were still being made when the centralized digital asset trading platform collapsed late last year.
From stardom to infamy
Sam Bankman-Fried introduced himself as a self-made billionaire trader who had the fortune to join the crypto wave at an early stage.
He attributed his wealth to his passion for trading and the ability to identify valuable opportunities.
After her rapid rise to fame, Bankman-Fried expressed a desire to donate a significant portion of her wealth to charitable causes.
However, his carefully constructed image crumbled in 2022 as the year brought a series of setbacks.
Bankman-Fried’s downfall began when it was revealed that it had used customer deposits for highly speculative investments.
When the crypto market crashed, the exchange and its affiliated venture arm, Alameda Research, found themselves owing clients a staggering $8 billion.
Now, SBF is facing fraud charges and multiple indictments. He is in his fourth day of trial and his former MIT roommate and software developer at FTX, Adam Yedidia, has come forward to testify against him.
Yedidia was tasked with creating a fiat onramp system for customers to easily make fiat deposits to FTX.
However, the funds were sent to a subsidiary of Alameda Research called Northern Dimension.
This inefficient process caused a software bug to infiltrate the system, greatly inflating the amount FTX owed its customers by an additional $8 billion.
When Bankman-Fried was informed of this problem, he appeared unconcerned, which led to Yedidia’s resignation.
The former FTX employee has since been granted immunity by the US government as a witness in the ongoing trial.
If convicted, SBF could spend decades behind bars.