FTX’s Bahamian firm spent a staggering sum of money on luxurious motels and lodging, flights, and meals simply 9 months earlier than the trade’s collapse, court docket filings revealed.
In chapter court docket paperwork reviewed by Enterprise Insider, FTX Digital Markets went by means of $40 million between January to September 2022, simply two months earlier than the corporate filed for chapter citing liquidity points.
Greater than $15 million went on luxurious motels and lodging, with $5.8 million of that at one resort — the Albany Resort. This luxurious resort is the place Sam Bankman-Fried lived in his $30 million penthouse till his arrest, the report added.
Round $3.6 million went on the Grand Hyatt, a four-star lodge that hosted British royalty in March 2022. There was additionally $800,000 spent on the five-star Rosewood resort.
Moreover, nearly $7 million was spent on meals and leisure with round half of that happening catering providers, in accordance with the paperwork. Practically $4 million was spent on flights and over $500,000 was spent on postage and supply.
FTX even made a personal cope with an air provider to fly their Amazon orders from a Miami depot for the reason that e-commerce big didn’t ship to the Bahamas, in accordance with London’s Monetary Occasions.
The FT added that the agency additionally supplied Bahamas workers with a “full suite of vehicles and gasoline coated for all staff [and] limitless, full expense coated journeys to any workplace globally.”
In Dec. 2022, a former worker revealed the extent of the corporate’s extreme luxurious expenditures saying it was “cult-like.” “Your entire operation was iconically and moronically inefficient,” she mentioned on the time.
FTX additionally made quite a few donations to native charities and organizations within the Bahamas.
There was hypothesis that a few of these donations might should be returned because the Caribbean island nation tries to maneuver on, in accordance with a Jan. 8 report in native media.
Bankman-Fried entered a plea of not responsible to eight legal fees within the U.S. District Courtroom within the Southern District of New York on Jan. 3.