CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

FTX collapse: Sam Bankman-Fried and fam ‘bought 19 properties in the Bahamas worth $121m’

By Darius McQuaid

12:50, 22 November 2022

The FTX crypto derivatives exchange logo is displayed on a smartphone screen and in the background
Out of the 19 properties, seven were luxury condominiums – Photo: Getty Images

The cryptocurrency derivatives exchange FTX that filed for bankruptcy on 11 November 2022 had “bought 19 properties in the Bahamas worth $121m (£101m)” under the company name for former CEO Sam Bankman-Fried’s parents and other top executives of the company.

These properties were bought over the past two years, Reuters reported.

FTX has its headquarters in the Bahamas, with Bankman-Fried said to be living there in a penthouse. He stepped down as CEO of FTX after it filed for bankruptcy.  

Some of the Bahamas penthouse roommates included Bankman-Fried, FTX co-founder and chief technology officer (CTO) Gary Wang, and FTX director of engineering Nishad Singh.

The former CEO of FTX, its co-founder and the company’s director of engineering are “under supervision” by the local authorities in the Bahamas.

FTT to USD 

Property worth $16.4m for former CEO’s parents

Bankman-Fried’s parents, Joseph Bankman and Barbara Fried were bought a property in the Bahamas worth $16.4m (£13.8m). The deed to the house allegedly has the property designated a “vacation home,” with documents dating back to 15 June of this year.  

However, CoinTelegraph reported that the couple had been trying to return the property to FTX prior to its filing for bankruptcy.  

ETH/USD

3,407.71 Price
-0.370% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

BTC/USD

63,634.40 Price
-1.410% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

BCH/USD

381.90 Price
+0.950% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.50

DOGE/USD

0.12 Price
-3.370% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

Out of the 19 properties, seven were luxury condominiums. The residents of the condos are unknown, but the property deed claims they were used as “residence for key personnel” of FTX.

From Hong Kong to the Bahamas

In September 2021, FTX moved its headquarters from Hong Kong to the Bahamas. The official channel of the prime minister of the Bahamas released a YouTube video celebrating the groundbreaking ceremony for the $60m HQ campus in April 2022.

In the video, Bahamas’ Prime Minister Philip Edward Davis said that FTX “has left positive footprints throughout the Bahamas”. The PM added that the “prescence of FTX in the Bahamas speaks to our ongoing economic recovery after Hurricane Dorian and the impact of Covid-19 pandemic.”

The PM went onto thank Bankman-Fried and his team “for identifying a home in the Bahamas and consistently creating opportunities for Bahamians”.

The $60m construction of the FTX HQ campus never actually took place, as an employee from Mosko, a Bahamas-based construction company hired to manage the project. told Fortune: “Nothing was ever done”.

The relocation occurred as FTX stated the Bahamas had a more regulatory favourable environment. The aim was to build an FTX campus that would house 1,000 people.

Related topics

Rate this article

Related reading

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided in this article is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents and has not been prepared in accordance with the legal requirements designed to promote investment research independence. While the information in this communication, or on which this communication is based, has been obtained from sources that Capital.com believes to be reliable and accurate, it has not undergone independent verification. No representation or warranty, whether expressed or implied, is made as to the accuracy or completeness of any information obtained from third parties. If you rely on the information on this page, then you do so entirely at your own risk.

Still looking for a broker you can trust?

Join the 630,000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading