As we wrote about back in February, Russia’s richest man Mikhail Prokhorov had reportedly agreed to purchase the Villa for $750 million but later backed out of the deal, forfeiting a $55 million deposit.

The Telegraph says there have been panic sales by owners desperate for cash.

Riviera property sources said that one British owner settled for less than $60 million in January for a Cap Ferrat property whose original sale price was $200 million.

The rumor and gossip about billionaire widow Lily Safra’s notoriously high maintenance Villa Leopolda seems never to end.

Back in August we reported that Russian billionaire Mikail Prokhorov was the mysterious purchaser of the lavish home in Villefranche-sur-Mer which was on the market for a record price of 390 million euros.

Then came a report in early January of 2009 in The Londoner’s Diary that stated The Widow Safra’s trophy estate had, in fact, not been sold.

The ongoing saga of the sale of the most expensive villa in the world continues.

Back in August we reported that Prokhorov, the Russian billionaire, was the mysterious purchaser of the Villa Leopolda - on the French Cote D’Azur - at the price of 365 million Euros ($545 million) - which was a staggering price to pay for a single property.

Now the London Times reports that Prokhorov paid a $55 million deposit, but wants to back out of the deal (Prokhorov reportedly lost $7 billion in the economic crisis).