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The sale of the manor comes almost four months after Bankman-Fried’s $40 million penthouse was equally put up for auction.
FTX-linked Effective Altruism Castle, a 550-year-old British Manor, near the University of Oxford has gone on sale. The castle was put on the market with the asking price of £15 million, an amount one that shows the sellers are willing to give it up at a loss.
Effective Venture Foundation bought the posh residence called Wytham Abbey in 2022 at £14.9 million, equivalent to $18.6 million. The acquisition was achieved through grants from Open Philanthropy.
The building was formerly the property of the Earl of Abingdon before it was later bequeathed to the university.
FTX Invested $26.8M in Effective Altruism Castle
Effective Altruism movement’s signature institution acquired the castle with plans to utilize it as a place to hold inferences and other intellectual meetings. It was particularly seen as a place to birth thoughts that could protect humanity even from the dangers of Artificial Intelligence (AI). Open Philanthropy’s contribution towards the acquisition of the manor sparked some reactions.
Several people highlighted that the charity is focused on the effective use of money for a greater good. However, the concerns heightened upon finding out that the buyer, Effective Venture Foundation, is connected to the then-CEO of FTX Exchange Sam Bankman-Fried. It is worth noting that in addition to Open Philanthropy’s grant, Effective Venture also received support from Bankman-Fried’s FTX Foundation.
This was before SBF was convicted and sentenced to 25 years imprisonment. Due to this arrangement, Effective Venture was compelled to settle with the FTX Estate and pay back the $26.8 million that Bankman-Fried contributed to the castle project.
This was also part of the effort of the new administration of FTX to recoup all funds the former CEO gave out as donations and contributions.
Unfortunately, the manor is now listed in the open market for only $20 million. The potential buyer will get a 27,000-square-foot luxury home with 27 bedrooms and 18 bathrooms, all on 23 acres of land just 3 miles west of Oxford.
Selling FTX Real Estate Castle to Repay Creditors
The sale of the manor comes almost four months after Bankman-Fried’s $40 million penthouse was equally put up for auction. The overseers of the FTX estate who were appointed by the court received approval to auction off several luxury properties in the Bahamas. These properties were purchased during the FTX’s rapid rise.
Notably, the real estate listed for sale included 35 luxurious units. One of it was the Orchid Penthouse worth $40 million, occupied by Bankman-Fried and his inner circle. Ultimately, the goal is to gather these funds and sell the assets to increase the capital available for distribution to FTX account holders and creditors.
The team has made a significant progress in this regard as the beleaguered exchange recently revealed a potentially favorable path for its creditors.
According to an updated reoreorganization plan submitted on May 7, 2024, FTX estimates having between $14.5 billion to $16.3 billion available for distribution. With this, some creditors are likely to receive payouts exceeding their initial claims by over 100%.
In the meantime, repayments to affected FTX creditors are yet to commence.
