FTX Extravagance in Hospitality Revealed in Court Filings
The Delaware bankruptcy court revealed that FTX officials spent over $40M to fund lavish lifestyles last year. The excessive expenditure was on luxurious hotels, vacations, regular travel, and exclusive clothing brands.
FTX Officials’ Luxurious Lifestyle
Court filings indicate that as the FTX investors anticipated their investment to come to fruition in the previous trading year, the exchange officials thought otherwise. The investors’ desire for financial freedom failed to see the light when the executive rerouted their returns for personal use.
Lawyers at the Delaware bankruptcy court were dismayed by the extravagant lifestyle of Sam-Bankman Fried, the former FTX chief executive. The attorneys observed that from the beginning of 2022 to last September, the official spent over $15M in deluxe hotels within and outside the US.
The court filings reported FTX spent $5.8M at the famous Albany Hotel. The embattled FTX executive enjoyed the beautiful ocean view, the exclusive Marina yacht experience, and the golf clubs at the hotel. Albany hotel is well-known for its luxurious accommodation services costing $60000 per night.
The documents submitted before the court indicated that the officials regularly visited Grand Hyatt Hotel, spending a total of $3.6M at the facility. Grands Hotel has unique hospitality services attracting prominent people across the globe.
Last March, the hotel made headlines after hosting a grand Caribbean event for Prince Williams and the Princess of Wales.
Bankman-Fried showed up at the event, spending an additional $28954 in the hotel. Grand Hyatt hotel is a 4-star hotel charging around $369 per night. In addition, the former FTX executive is reported to live extravagantly, spending more than $80000 at Rosewood Hotel.
In the Bahamas, Bankman-Fried lived large with a preference for co-opting outdoor events by hiring the best caterers in the region. It was observed that over $6.9M was spent on meals and services in entertainment. The firm is alleged to have paid Six Stars Catering company and Hyatt caterers amounting to $1M and $1.4M, respectively.
Besides spending lumps of money on hotels and food, the company hired private jets to make deliveries. Amazon orders were delivered using private planes from Miami to other regions outside Bahama. Reportedly FTX postage fee translated to $50000 while the regular trips were $3.9M.
Elsewhere, FTX subsidiary Alameda research owes Margaritaville beach more than $55000 spent at the facility.
At the time of arrest, SBF and his counterparts were living big in Albany, where they had hired a penthouse costing $30M.
Why FTX was the Best Place to Work For in 2022?
Despite paying the employees handsomely, FTX provided the employees with cars, gas and catered for transport expenses. The employees had regular eat-outs at Nassau Bistro, spending more than $2500 for lunch.
The employees were entitled to go on vacation for months, spending quality time with their employers. They stayed at Margaritaville beach for more than one month, hiring 20 suites for accommodation.
FTX Court Decision
The detailed disclosure of lavish spending shows potential loopholes that plunged FTX into a liquidity crisis as users lost their deposits.
At the moment, Sam-Fried is facing eight charges in court. The top in the list of charges is fraud cases and attempts to engage in money laundering. The court ruling could force him to remain behind bars for more than 115 years.
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