John Ray, the chief lawyer of Chapter 11 cryptocurrency firm FTX Trading LTD, requested New York judge Lewis Kaplan to return two seized aircraft, a Legacy 600 business jet, C6-BDE (msn 14500967), and a Global Express 5000, N410AT (msn 9295), to FTX’s Bahamian liquidators, who have a “superior interest” in the assets.
First reported by the daily Tribune Business, Ray and FTX Digital Markets’ liquidators petitioned Judge Kaplan to return USD143 million seized by the US United States Department of Justice, as well as the two aircraft, so the liquidators in the Bahamas can finance investors' recoveries and payout to victims of the failed crypto exchange.
Both planes were operated by Island Air Capital, a Bahamian charter carrier owned by Paul Aranha. FTX financed them through an “unsecured no-interest loan,” ch-aviation reported earlier this year, for a total cost of USD27.4 million. FTX and its private trading arm, Alameda Research, also spent over USD4 million in plane upgrades.
After FTX founder Sam Bankman-Fried was charged with seven counts, including fraud and money laundering, the US authorities seized all property derived from proceeds traceable to the offences, including the two aircraft. N410AT was seized in February 2023. Meanwhile, Trans Island Airways (a company also owned by Aranha) agreed to surrender ownership of C6-BDE in April 2024 in exchange for being reimbursed for out-of-pocket expenses incurred for maintaining the planes.
“Amending the preliminary forfeiture order to provide for the return of the specific property to the debtors and/or FTX Digital Markets will benefit all the creditors and stakeholders in the Debtors’ Chapter 11 bankruptcy proceedings and FTX Digital Markets’ liquidation in The Bahamas,” said the defence in its joint petition.
As it stands, both aircraft are in the custody of the US authorities and could be auctioned off and proceeds used to compensate FTX's victims.
