Mikhail Prokhorov, Russia's second richest man, has lost his $53 million deposit for Villa Leopolda, a mansion in the south of France.
The house, which was created for King Leopold II of Belgium, was to be sold for $530 million. The sale would have made it the most expensive house in the world.
Prokhorov, who is worth almost $18 Billion, according to Finans magazine, was forced to pull out of the purchase due to the unstable world economy. The purchase is likely to cause a degree of humiliation for Prokhorov, whose images also suffered a blow when he was arrested by French police for allegedly flying prostitutes into a villa in the French Alps in January of 2007. He was later cleared of the charges but his reputation had been tarnished.
The house will remain in the hands of its current owner, 71-year-old Lily Safra. Safra inherited the house after the murder of her husband, Edmund, in 1999.
Safra said she would donate all the money to ten charities. She said, "By transforming the deposit into an act of giving I would like to encourage all who can do so to support medical research and other humanitarian causes."
WATCH a report on the sale by ABC News