Sam Bankman-Fried’s $400M Bahamas real estate empire, including a $45M penthouse, hits the market as FTX begins asset liquidation.
The real estate market has never been wilder. From Jeff Bezos’ $900 million property empire that’s still growing (and growing fast) to the 1 million Koreans who bid on 3 tiny apartments, one thing is clear: people want property and they want it badly. The same was evidently true of disgraced FTX overlord Sam Bankman-Fried but, as he settles into a long stint behind bars, his properties are going to auction.
A Closer Look At The Orchid Penthouse
Amid the stunning scenery of Nassau’s New Providence Island, a new chapter of the never-ending crypto saga is underway. The opulent $30 million USD (c. $45 million AUD) penthouse that sits atop the Orchid building was once the headquarters of Sam Bankman-Fried’s now-defunct FTX empire but now is heading for sale. This prime piece of real estate, where Bankman-Fried managed his $32 billion USD cryptocurrency exchange, could soon be in the hands of a (slightly less evil) new owner.
As FTX’s remaining properties, once emblematic of crypto’s golden days, are prepared for sale, the island is preparing for a significant chunk of its luxury properties to be liquidated. At the forefront of these listings is the penthouse where Bankman-Fried and his team operated until FTX’s very dramatic downfall in late 2022. The infamous beanbag chair — where SBF would often take naps near the expansive pool — is now a poignant symbol of the rise and fall of FTX.
The Future Of FTX’s Luxury Real Estate
Leading up to the collapse, Bankman-Fried’s team invested $255 million USD (c. $386 million AUD) in 52 high-end properties across New Providence Island. Among these, the Albany resort — a famous enclave for the ultra-wealthy — saw $140 million USD spent on 15 condos and a villa. The Orchid penthouse, a sprawling 11,500-square-foot residence, was acquired for $30 million USD and quickly came to represent the jewel in FTX’s crooked crown.
FTX has assured that around 2 million customers and creditors will recover the $11 billion USD lost in the exchange’s collapse, along with some interest. Whether that comes to fruition remains to be seen. The future of its real estate holdings is even less certain.
Despite FTX’s previous success, its real estate investments might not fare as well in the market. Industry experts believe the company significantly overpaid for these properties, unintentionally inflating their own market. According to Robin Brownrigg, a property appraiser in Nassau:
“They created an artificial bubble…”
Robin Brownrigg
Earlier this year, PwC — the firm overseeing FTX’s asset liquidation in the Bahamas — solicited proposals from real estate brokers to offload 34 properties, primarily condos along New Providence Island’s pristine beaches. Sales are anticipated to begin later in the summer.
Could you see yourself giving the Bahamas beanbag lifestyle? If so, it’s time to get that bid prepped…