Governing body plans to sell $300 million luxury yacht, reportedly belonging to a Russian tycoon under sanctions, at a significantly reduced cost
The yacht named Amadea, seized by US authorities in 2022, is currently being auctioned off for $300 million. The Amadea, a 106-meter-long vessel, was previously believed to belong to the sanctioned Russian businessman Suleiman Kerimov. However, an unsanctioned Russian businessman, Eduard Khudainatov, has claimed ownership of the Amadea.
The Amadea auction is being conducted via a closed bid auction, closing on September 10, 2025. The bid deposits for the Amadea auction will be held in escrow until the auction closes, at 2:00 pm ET. A $10 million initial bid deposit is required from each bidder.
Khudainatov's lawyer, Mr. Ford of the law firm Ford O'Brien Landy, has been trying to appeal the forfeiture of the Amadea. Mr. Ford claims that the sale of the Amadea is improper and premature, and that the government must repay the vessel's full value if their appeal succeeds.
The Amadea has been labeled a 'floating lawsuit' by law professor Paul Stephan, suggesting potential legal risks for the buyer. Stephan questions the fairness of the US civil forfeiture procedure, whether the US court denied the nominal owner his day in court, and whether US sanctions are against public policy.
Despite Kerimov's denial of ownership, the buyer who has claimed ownership of the yacht so far is a Russian oligarch connected to Evgeny Prigozhin, with the disputes being challenged in courts in the United States and Australia.
Mr. Ford advises prospective bidders to study precedents of judgments in European and Caribbean courts that have penalized buyers who acquired assets through illegitimate seizures, including Russian-owned superyachts. He warns that potential buyers of the Amadea may face years of costly, uncertain litigation due to potential legal challenges outside the United States.
The Amadea, docked in San Diego, California, for the auction, features eight cabins, a helipad, and a cinema lounge. The upkeep of the Amadea is estimated to cost nearly $1 million per month.
Countries that are not inclined to accept the US sanctioning regime and have less independent courts might be more inclined to reject the US judgment regarding the Amadea. Law professor Paul Stephan suggests that foreign courts might judge otherwise regarding Eduard Khudainatov's ownership of the Amadea.
The US has decided to sell the Amadea despite ongoing legal disputes. The auction of the Amadea, a 'floating lawsuit', continues to attract attention and controversy.
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