Sam Bankman-Fried: Government going after two luxury jets linked to disgraced FTX founder

The government is going after two multimillion-dollar luxury jets linked to FTX founder Sam Bankman-Fried as it tries to claw back some of the money the alleged billion-dollar fraudster stole from clients and investors. 

The pricey jets include a Bombardier Global 5000 and an Embraer Legacy EMB-135BJ, which cost $15.9 million and $12.5 million, according to a bankruptcy court filing this week.

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The jets are also at the center of an international tug of war between Island Air Capital, the Bahamian company that owns them, FTX debtors, and the U.S. government.

The Embraer and Bombardier were originally purchased by IAC last year for $28.4 million, using “financing provided from FTX,” an unsecured, no-interest loan agreed to in a “handshake deal” between Bankman-Fried and IAC owner Paul Aranha.

The Bombardier Global was seized by U.S. Marshals in February. IAC has possession over the Embraer Legacy, though the government has also threatened to take that.

The government created waves in the crypto world after it took other disputed assets in the wake of FTX’s implosion. In January, it seized a chunk of Robinhood shares worth nearly $500 million that Bankman-Fried, FTX, and BlockFi have claimed they are still entitled to.

Bankman-Fried had bought about a 7.6% stake in Robinhood, calling it an “attractive investment.” The investment vehicle that he used to buy the shares was Emergent Fidelity Technologies. FTX and Emergent have filed for bankruptcy. The Department of Justice seized the Robinhood shares, but the trading app’s board authorized a 55 million-share buyback, which a U.S. court signed off on. 

Bankman-Fried’s criminal trial began this week. Federal prosecutors claim he siphoned billions of dollars from unsuspecting customers to fund a lavish lifestyle and then lied to cover his tracks. Bankman-Fried, 31, is facing seven criminal charges, including money laundering and securities fraud. If convicted on all charges against him, he could be sentenced to 110 years in prison.

Four of his friends, including former girlfriend Caroline Ellison, have already pleaded guilty to similar charges.

Bankman-Fried’s defense team has hinted it plans on claiming Ellison was partly to blame for the downfall that rocked the crypto world.

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The defense has also argued that FTX’s downfall took place because Bankman-Fried was an inexperienced businessman who got in over his head and rebutted claims by the government that he masterminded a plan to make himself wealthy.

Bankman-Fried has pleaded not guilty to the charges against him.