Prosecutors in the case against Sam Bankman-Fried, the founder and former CEO of defunct crypto exchange FTX, have formally requested court authorization to sell two luxury jets connected to the former billionaire. The move comes as Bankman-Fried prepares for an impending prison sentence following his conviction on all seven counts of fraud.
Court approval sought for sale of luxury jets
In a filing with the United States District Court for the Southern District, prosecutors have proposed a court order to sell two multi-million dollar aircraft – a Bombardier Global 5000 BD-700-1A11 and an Embraer Legacy EMB-135BJ. The government aims to prevent the devaluation of these assets, slated for forfeiture in October 2023 due to their association with Bankman-Fried’s criminal case.
The proposal for the sale of the jets has garnered agreement from various parties involved, including Ryan Salame, FTX’s former executive, Paul Aranha, founder of Trans-Island Airways, FTX debtors, and Capital Peak Aviation, among others. The defendant and his legal team have also consented to the sale, marking a significant step in the process.
Details of the sale process
While the exact selling price for the private aircraft has not been disclosed, prosecutors have appraised them at $15.9 million and $12.5 million, respectively. The Embraer Legacy aircraft is set to be transported to a Florida airport by Island Air Capital (IAC) within 30 days of the court order. Meanwhile, the Bombardier Global 5000 remains under secure custody of the United States Marshals Service (USMS), with the sale proceedings to be managed by the USMS and held in escrow within their Seized Asset Deposit Fund (SADF).
As Sam Bankman-Fried faces sentencing for his conviction on fraud charges, the prosecution is seeking a prison term of 40 to 50 years, potentially leading to incarceration until the former crypto billionaire’s 70s or 80s. In contrast, Bankman-Fried’s legal team proposes a significantly shorter sentence of approximately five to six years.
Implications of the sentence
The sentencing, scheduled for Thursday, March 28, carries significant implications for Bankman-Fried and the broader crypto community. With the founder of FTX potentially facing a lengthy prison term, stakeholders are closely monitoring the outcome and its impact on the industry.
As prosecutors seek court approval to sell luxury jets linked to Sam Bankman-Fried, the former FTX CEO awaits his impending prison sentence following a conviction on fraud charges. With agreement from multiple parties involved in the case, including the defendant himself, the sale of the aircraft marks a pivotal development in the legal proceedings. Meanwhile, the disparity in sentencing proposals underscores the high stakes involved, with the outcome poised to shape the future trajectory of Bankman-Fried and the crypto landscape at large.
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