Oxford Mansion Linked to FTX Charity Lists for £15M

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As an analyst with a background in financial analysis and effective altruism, I find the situation surrounding the sale of Wytham Abbey, the Effective Altruism Castle, to be intriguing. The castle, which was acquired by the Effective Venture Foundation for £14.9 million ($18.6 million) in 2022 with grants from Open Philanthropy and additional support from FTX founder Sam Bankman-Fried’s foundation, is now listed for sale at a loss of £3.6 million (approximately $4.5 million).

A 550-year-old British manor linked to Effective Altruism and FTX, located near the University of Oxford, is now for sale with an asking price of £15 million. The sellers are apparently open to accepting a lower offer, indicating their readiness to part with the property at a loss.

In the year 2022, Effective Venture Foundation successfully procured Wytham Abbey for a grand sum of £14.9 million or approximately $18.6 million. This acquisition was made possible through generous grants extended by Open Philanthropy.

Previously owned by the Earl of Abingdon, the building now belongs to the university after being bequeathed to them.

FTX Invested $26.8M in Effective Altruism Castle

The Effective Altruism community’s prominent organization purchased a castle with the intention of using it as a venue for conferences and intellectual discussions. Notably, this site was viewed as a breeding ground for ideas that could safeguard humanity from potential threats posed by Artificial Intelligence (AI). Open Philanthropy’s financial support for the acquisition generated some buzz.

Multiple individuals expressed approval for the charity’s dedication to maximizing financial impact for a noble cause. Yet, unease arose when it was discovered that the donor, Effective Venture Foundation, has ties to Sam Bankman-Fried, who was formerly the CEO of FTX Exchange at the time. It is important to mention that besides Open Philanthropy’s grant, Effective Venture additionally received funding from Bankman-Fried’s FTX Foundation.

Prior to SBF’s conviction and subsequent sentence of 25 years in prison, Effective Ventures was forced to make amends with the FTX Estate by returning the $26.8 million that Bankman-Fried had invested in the castle project.

The new administration at FTX worked to recover all the funds that the previous CEO distributed as charitable donations and gifts.

Regrettably, the manor is up for sale at a price of merely $20 million. The fortunate purchaser will acquire a grand 27,000-square-foot residence, complete with 27 bedrooms and 18 bathrooms, situated on a spacious 23-acre plot. This exquisite property lies just a short 3-mile drive to the west of Oxford.

Selling FTX Real Estate Castle to Repay Creditors

Approximately four months after Bankman-Fried’s $40 million penthouse was slated for auction, the manor is set to be sold. The trustees of the FTX estate, who have been authorized by the court, are planning to auction off several high-end Bahamian properties. These properties were acquired during FTX’s meteoric growth.

As a researcher, I’ve discovered that among the 35 high-end real estate listings was one particularly noteworthy property: the Orchid Penthouse. Valued at an impressive $40 million, this unit was formerly inhabited by Bankman-Fried and his close associates. The aim is to successfully acquire these assets and subsequently sell them to augment the available capital. This increased funds will then be redistributed among FTX account holders and creditors.

As a crypto investor, I’m encouraged by the recent update from the exchange’s team. They’ve made substantial strides towards finding a solution for their creditors, and I’m hopeful that this could lead to a favorable outcome.

Based on the revised reorganization plan submitted on May 7, 2024, I estimate that FTX holds between $14.5 billion and $16.3 billion in assets for distribution to creditors. Consequently, some creditors are likely to receive payments exceeding their initial claims by more than 100%.

In the meantime, repayments to affected FTX creditors are yet to commence.

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2024-05-08 13:21