FTX squandered its users’ money on travels, food and fancy hotels
Yesterday Business Insider revealed that FTX spent nearly $40 million on hotels, food and travels in just nine months, according to the the data contained in some documents presented to the Delaware bankruptcy court. In particular, those documents show that from January to September 2022 the company spent 15.4 million dollars on hotels and luxury accommodations in the Bahamas, where the company is based. The bulk of that ($5.8 million) was spent at the Albany Bahamas, a luxury resort, where Sam Bankman-Fried lived in an attic.
According to one of Albany Bahamas’ founders, this accomodation can cost up to $60,000 a night in the high season. Another $3.6 million was spent at the Grand Hyatt, a four-star hotel where the cheapest room costs $369 a night and $800,000 at the five-star Rosewood. Furthermore FTX squandered $6.9 million on meals and entertainment, with nearly half going to catering services. According to Fox Business, Sam Bankman-Fried often spent $2,500 for FTX staff’s lunch at a Bahamian bistro.
According to Financial times, FTX spent roughly $3.9 million chartering private planes to carry Amazon packages from Miami, because deliveries to the Bahamas were not guaranteed. All of this clashes with what was declared by Sam Bankman-Fried. In December he said he only had $100,000 in his bank account but two individuals have signed on to be sureties for his $250 million bond, along with his parents. According to his lawyers, now Sam Bankman-Fried needs Robinhood shares to pay for his criminal defense and called for a halt to their seizure, which is worth an estimated $450 million. He pleaded not guilty to the charges.
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