FTX lowered $40 million on food and hotels in 9 months

Bahamian company FTX spent more than $40 million on luxury hotels and lodging, flights and food in the nine months before the stock market crashed. It is reported by Insider.

According to the publication, FTX Digital Markets spent $40 million between January and September last year before filing for bankruptcy in November due to liquidity problems. At the same time, more than $15 million was spent on luxury hotels and accommodation, of which $5.8 million was spent on one resort – the Albany Hotel. It’s a luxury resort where company founder Sam Bankman-Freed lived in his $30 million penthouse before his arrest.

Also, about $3.6 million was spent on the Grand Hyatt, a four-star hotel where members of the British royal family stayed in March. Another $800,000 went to the five-star Rosewood resort.

According to the documents, almost $7 million was spent on food and entertainment, with about half of this amount spent on catering services. Also, $4 million was spent on flights, and more than $500,000 was spent on postage and shipping.

FTX even made a private deal with an air carrier to ship their Amazon orders from a depot in Miami, as the e-commerce giant didn’t deliver to the Bahamas.

In addition, it has recently become known that the parents of the founder of Bankman-Fried and the firm’s senior management have bought at least 19 properties in the Bahamas in the past two years. Most of the purchases — 15 properties worth about $100 million — were made in 2021 and 2022 by a division of FTX called FTX Property Holdings. The most expensive purchase was a $30 million penthouse in Albany.

FTX filed for bankruptcy on November 11 amid a sudden liquidity crunch. The crypto exchange operator took advantage of client assets to fund a risky investment by subsidiary trading firm Alameda Research.

Source: CryptoNewsHerald.com

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