DOJ Targets Bankman-Fried's Luxury Jets amid Fraud Trial

<p>The US Department of Justice (DOJ) listed two private jets
among the assets that could be seized in recovering money linked to the
collapse of Bankman-Fried's cryptocurrency exchange, FTX. Bankman-Fried is
currently on trial in New York for fraud and conspiracy.</p>

<p>The court filing, submitted yesterday (Wednesday), provided
information about the jets. However, even though Sam Bankman-Fried supposedly
owned them, these expensive jets were never used by him. According to a report
from <em>Coindesk</em>, there are concerns about whether the aircraft was bought using
customers' funds.</p>

<p>The DOJ maintains that both aircraft are subject to
forfeiture as assets acquired with fraudulently obtained proceeds. On the
contrary, FTX has claimed ownership, citing that the loans used for the acquisition of the aircraft were undocumented. </p>

<h1>FTX’s Ownership Dispute over Luxury Jets</h1>

<p>With the unresolved ownership dispute, questions have
emerged concerning who will bear the financial burden of ongoing repairs and
inspections for these high-end aircraft. Interestingly, no one associated with
<a href="https://www.financemagnates.com/tag/ftx/" target="_blank" rel="follow">FTX</a> ever used the jets, as they were still undergoing upgrades when the company
filed for <a href="https://www.financemagnates.com//">bankruptcy</a>.</p>

<p>Adding a layer of intrigue to the story is the revelation
that the Embraer Legacy and Bombardier Global were originally acquired by
Island Air Capital (IAC) for a substantial sum of money. IAC is said to have purchased the
Embraer for $12.5 million and the Bombardier for $15.9 million, with financing
provided by FTX. </p>

<h2>Private Jet Allegedly Acquired by Salame</h2>

<p>Last month, a former Executive at FTX, Ryan Salame, <a href="https://www.financemagnates.com/cryptocurrency/ftxs-salame-set-to-plead-guilty-after-prolonged-negotiations-with-prosecutors-report/" target="_blank" rel="follow">pleaded guilty</a> to his alleged involvement in the collapse of the crypto exchange. Salame is accused of
potential violations of political donation regulations and loans from Alameda
Research, the hedge fund linked to FTX. Besides that, authorities traced a
private jet acquired by Salame during his time at FTX, Finance Magnates
reported, quoting sources who shared information with <em>Bloomberg</em>. </p>

<p>Three other close associates of Bankman-Fried, including
<a href="https://www.financemagnates.com/cryptocurrency/us-doj-accuses-ftx-founder-of-leaking-caroline-ellisons-private-diary/" target="_blank" rel="follow">Caroline Ellison</a>, the CEO of Alameda, Gary Wang, the Co-Founder of FTX, and Nishad
Singh, the Engineering Chief, have already pleaded guilty and are cooperating with
authorities. Prosecutors contend that Bankman-Fried diverted FTX's customer
funds for personal use, high-risk investments, and political contributions.</p>

This article was written by Jared Kirui at www.financemagnates.com.