DOJ Seeks Forfeiture of Luxury Aircraft Owned by Samuel Bankman-Fried

The United States Department of Justice (DOJ) has submitted a document on October 4, 2023, indicating that two luxury aircraft owned by Samuel Bankman-Fried may face forfeiture. These aircraft, a Bombardier Global 5000 BD-700-1A11 and an Embraer Legacy EMB-135BJ, are worth millions of dollars.
The basis for the action to forfeit the property is linked to “offenses described in Counts One through Four and Seven of Indictment 22 Cr. 673 (LAK)” attributed to Bankman-Fried.

In a recent development, the United States Department of Justice (DOJ) has taken steps to potentially forfeit two luxury aircraft owned by Samuel Bankman-Fried, a prominent figure in the cryptocurrency world. The petition, submitted on October 4, 2023, revolves around these high-value assets, a Bombardier Global 5000 BD-700-1A11 and an Embraer Legacy EMB-135BJ, both worth several million dollars.

The foundation for this forfeiture action is rooted in alleged offenses mentioned in “Counts One through Four and Seven of Indictment 22 Cr. 673 (LAK),” which Bankman-Fried is currently facing.

Legal Battle Over Luxury Aircraft Owned by Samuel Bankman-Fried

However, the controversy surrounding the ownership of these aircraft has been brewing for some time. Documents filed on September 21 revealed a dispute involving the federal government of the United States, FTX (with which Bankman-Fried is associated), and Island Air Capital, the aviation business responsible for operating these planes. The government asserts that the aircraft were acquired with illegitimate finances, while FTX contends that the loans used for the acquisition were not properly documented.

This legal saga is part of a broader legal battle involving Samuel Bankman-Fried. In December 2022, the United States Commodity Futures Trading Commission (CFTC) initiated legal action against him, FTX, and Alameda Research, alleging violations of the Commodity Exchange Act. The lawsuit claims that Bankman-Fried used customer funds from FTX for personal expenses, including the purchase of these private planes. Furthermore, it accuses the defendants of violating the terms of their employment.

Currently, Samuel Bankman-Fried is on trial for offenses linked to the failure of FTX in November 2022. The trial began on October 3, 2023, with jury selection, followed by the presentation of opening statements on October 4th. In its opening statement, the DOJ depicted Bankman-Fried as intentionally misleading clients and investors, while the defense argued that he is a young entrepreneur whose business endeavors did not pan out.

The outcome of this legal battle will undoubtedly have significant implications not only for Bankman-Fried but also for the broader cryptocurrency and financial sectors.