FTX didn’t keep down on company expenses in the Bahamas, according to court archives.
FTX’s Bahamian company spent a staggering amount of money on luxury lodgings and accommodation, flights and food in the nine months under the steady gaze of the exchange’s collapse, court filings have uncovered.
According to bankruptcy court archives assessed by Business Insider, FTX Digital Markets went through $40 million between last January and September, prior to filing for bankruptcy in November due to “liquidity issues.”
More than $15 million went on luxury lodgings and accommodation, with $5.8 million of that at one retreat — the Albany Inn. This is the luxury resort is where Sam Bankman-Seared resided in his $30 million penthouse until his capture, the report added.
Around $3.6 million went on the Grand Hyatt, a four-star lodging that facilitated English sovereignty in Spring. $800,000 was expended at the five-star Rosewood resort.
Moreover, nearly $7 million was spent on meals and entertainment, with around half of that on catering services, according to the archives. Almost $4 million was spent on flights and more than $500,000 was spent on postage and conveyance.
FTX even made a private deal with an air carrier to fly their Amazon orders from a Miami depot since the internet business giant didn’t convey to the Bahamas, according to London’s Financial Times.
The FT added that the firm also furnished Bahamas staff with a “full set-up of vehicles and gas covered for all employees [and] limitless, full expense covered excursions to any office globally.”
In December, a previous representative uncovered the extent of the company’s over the top luxury consumptions, saying it was “religion like.” “The whole operation was iconically and idiotically wasteful,” she said at the time.
FTX also made numerous donations to local charities and organizations in the Bahamas.
There has been speculation that a portion of these donations might need to be returned as the Caribbean island nation attempts to continue on, according to a Jan. 8 report in local media.
Bankman-Fried entered a supplication of not blameworthy to eight criminal accusations in the U.S.The Southern District of New York has a district court.