A property linked to Sam Bankman-Fried’s political spending was taken off the market by the seller as a sign of “good faith” after being linked to FTX client funds, the Wall Street Journal reported.
The townhouse, located a few blocks from the United States Capitol in the Capitol Hill neighborhood, is owned by Guarding Against Pandemics, a nonprofit organization established by Gabriel Bankman-Fried, brother of the former CEO of the stock exchange. bankrupt.
In January court filings, FTX’s new management claimed that client funds were embezzled to purchase the property for $3.3 million. The Guarding Against Pandemics withdrew the listing after the media contacted the real estate agent about the property.
A Guarding Against Pandemics spokesperson told the WSJ that Gabriel is no longer part of the organization. FTX creditors recently requested subpoenas for documents from Bankman-Fried’s mother, Barbara Fried, and Gabriel, alleging that they did not respond to previous requests for information.
According to property records, the nonprofit attempted to sell it for the same price it paid in April 2022 to lobbyist Mitch Bainwol and his wife, Susan Bainwol.
Related: FTX Sister Company Alameda Research Sues Voyager Digital for $446 Million
The three-story building is 4,100 square feet, has four bedrooms, and was reportedly used as the organization’s office, with workstations set up in several rooms. The real estate company in charge of the listing held some open days, but no purchase offers were received.
FTX’s donations to political parties and candidates are under investigation by US prosecutors. Bankman-Fried was the second-largest “contributing CEO” to Joe Biden’s 2020 presidential campaign, contributing $5.2 million. Days before the November 2022 midterm elections, he admitted to being a “major donor” to both sides of the political spectrum in Washington.
The exchange’s new management team has been working to identify funds to pay off creditors since it filed for bankruptcy on November 11. According to FTX lawyer Andy Dietderich, the exchange had “recovered $5 billion in cash and liquid cryptocurrency” as of January.
The takeback provisions could force companies and investors to pay back billions of dollars paid in the months before the cryptocurrency exchange collapsed, Cointelegraph reported.
This post Unlisted FTX-linked Washington DC townhouse: report
was published first on https://cointelegraph.com/news/ftx-tied-townhouse-in-washington-dc-unlisted-report