July 21, 2024
Sam Bankman-Fried's legal battle ensnares luxury jets' fate
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Legal Battle Over Sam Bankman-Fried’s Luxury Jets Intensifies Amid Fraud Allegations

Sam Bankman-Fried’s two luxury jets worth millions of dollars are currently at risk of forfeiture, as the United States Department of Justice (DOJ) reported on October 4th. According to the DOJ filing, the potential forfeiture is a result of the charges laid out in Counts One through Four and Seven of Indictment 22 Cr. 673 (LAK) against SBF.

The two aircraft in question are a Bombardier Global and an Embraer Legacy, and they are embroiled in a dispute over ownership involving the government, FTX, and Island Air Capital, the aviation company operating the jets. These details were documented in filings made on September 21st with the U.S. Bankruptcy Court for the District of Delaware. The government asserts that both aircraft are eligible for forfeiture due to their alleged purchase with fraudulent funds. In contrast, FTX claims that the loans used for acquiring the jets lack proper documentation.

In December 2022, the U.S. Commodity Futures Trading Commission (CFTC) filed a lawsuit against SBF, FTX, and Alameda Research, accusing them of violating the Commodity Exchange Act. The CFTC’s allegations against SBF included the use of FTX customer funds for personal expenses, including the acquisition of private jets. These legal actions coincide with Bankman-Fried’s ongoing trial on multiple charges related to FTX’s downfall in November 2022. SBF has pleaded not guilty to all charges, with Judge Lewis Kaplan presiding over the trial.

The trial commenced on October 3rd with jury selection, followed by opening arguments from both the prosecution and the defense on October 4th. In their opening statement, the DOJ portrayed Bankman-Fried as deliberately deceiving customers and investors to amass wealth and expand his operations. In contrast, SBF’s defense argued that he is a young entrepreneur whose business plans did not pan out as intended.

Image by pixabay

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