DOJ Targets SBF's Jets for Forfeiture
Luisa Crawford Oct 06, 2023 04:32
Samuel Bankman-Fried, also known as "SBF," faces the possibility of asset forfeiture, including two luxury jets, as per a filing by the U.S. Department of Justice (DOJ) dated October 4, 2023. The forfeiture is linked to multiple charges against Bankman-Fried, who is currently on trial. The aircraft in question are embroiled in an ownership dispute involving the U.S. government, FTX, and Island Air Capital.
According to a document that was submitted by the United States Department of Justice (DOJ) on October 4, 2023, two luxury aeroplanes worth several millions of dollars that are held by Samuel Bankman-Fried are now potentially vulnerable to forfeiture. The petition states that the foundation for the action to forfeit the property belongs to "offences described in Counts One through Four and Seven of Indictment 22 Cr. 673 (LAK)" committed by Bankman-Fried. Both a Bombardier Global 5000 BD-700-1A11 and an Embraer Legacy EMB-135BJ are named as the aircraft in question here.
Controversy Regarding Ownership It was revealed on September 21 in documents submitted to the United States Bankruptcy Court for the District of Delaware that the planes are at the centre of a controversy regarding ownership. The parties concerned are the federal government of the United States, FTX, and Island Air Capital, which is the aviation business that operates the planes. While the government maintains that the aircraft were acquired via the use of illegitimate finances, FTX is of the opinion that the loans that were used for the acquisition were not properly recorded.
The United States Commodity Futures Trading Commission (CFTC) initiated legal action against Bankman-Fried, FTX, and Alameda Research in the month of December 2022. The complaint claims that the defendants violated the Commodity Exchange Act and that Bankman-Fried exploited customer cash from FTX for personal expenses, including the purchase of private planes. Additionally, the lawsuit claims that the defendants violated the terms of their employment.
At this time, Bankman-Fried is on trial for several offences that are connected to the failure of FTX in November of 2022. The proceedings of the trial, which were presided over by Judge Lewis Kaplan, got underway on October 3, 2023 with the selection of the jury. On October 4th, the court heard opening statements in the case. In its opening statement, the Department of Justice (DOJ) depicted Bankman-Fried as intentionally misrepresenting clients and investors. In contrast, the defence contended that he is a young entrepreneur whose business ideas "didn't work out."
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