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FTX Tied to $28 Million Private Jet Purchase Before Collapse

  • FTX loaned $28.4 million to a Bahamian aircraft company, Island Air Capital (IAC), to buy two private jets - a Bombardier Global 5000 and an Embraer Legacy 600.

  • IAC says it owns the planes, which were operated by Trans Island Airways (TIA). TIA's CEO Paul Aranha is the beneficial owner of IAC.

  • FTX signed a deal to invest $17 million in TIA around the same time, poised to become a joint owner of the aviation firm.

  • After FTX's collapse, the US Marshals Service seized one of the jets. In August, FTX Debtors claimed ownership of both planes.

  • IAC is seeking relief from an automatic stay to operate or sell the jets, or wants liens or protection based on the millions spent maintaining them.

businessinsider.com
Relevant topic timeline:
FTX Assets to Be Sold Off Gradually Under Court Supervision
The Delaware Bankruptcy Court has approved the sale of FTX digital assets, excluding Bitcoin, Ether, and certain insider-affiliated tokens, in weekly batches through an investment adviser, with limits set at $50 million for the first week and $100 million in subsequent weeks.
Authorities Seize Sam Bankman-Fried's $28 Million Private Jets in FTX Fallout
The government has seized two private jets worth a total of $28 million as part of the trial against Sam Bankman-Fried, the CEO of FTX, with a dispute arising over ownership of the planes.
FTX Lawyer Sun Unaware Customer Funds Loaned to Alameda, Resigned After Learning Billions Missing
Former FTX general counsel Can Sun testified that he was unaware of FTX's use of customer assets and that he was shocked to learn about Alameda's exemption from auto liquidation, which allowed the trading firm to go "infinitely negative" on FTX's platform. Sun also documented over 30 loans made by Alameda to FTX executives, totaling over $2.17 billion, and received a personal loan and bonus himself. He resigned from the company after learning about the missing funds and the withdrawal of customer deposits.