Guilty pleasures – A few days later Sam Bankman-Fried played the innocence card facing the eight counts against him, the new revelations about FTX’s spending spree have something to pique cryptocurrency exchange victims.
FTX: a VIP client of luxury hotels in the Bahamas
Documents filed in Delaware bankruptcy court reveal significant frivolous expenses charged to the company less than a year before the cryptocurrency exchange crashed.
Between January and September of last year, FTX Digital Markets reportedly spent 40 million dollars to cover the costs of hotels and luxury accommodation, but also expenses related to flights and entertainment.
FTX reportedly delivered $15.4 million in hotels and luxury accommodations, during these 9 months. Of this amount, $5.8 million was used to pay taxes related to the Albany Hotel resort.
Before his arrest in the Bahamas, Sam Bankman-Fried lived in a $30 million penthouse in Albany. According to the statements of one of the founders of the resort in Fortune in 2021, the price of accommodation for one night there can reach $60,000 in high season.
FTX executives and/or employees thus led a princely life at the expense of the company and at the expense of its clients’ wealth. The company has also spent $3.6 million benefiting the 4-star Grand Hyatt hotel, which hosted Prince William and Princess Kate Middleton in March 2022. In addition, FTX spent 800 000 dollars to the five-star Rosewood Hotel, where the price for one night is at least $1,100.
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A nine-figure appetite, a private plane for a few packages
Alongside these sky-high hotel costs, the company has also spent lavishly on meals and entertainment ($6.9 million). Half of this sum was used to pay for restaurant services. $1.4 million And nearly a million dollars they were used to pay, respectively, the costs of catering at the 4-star Hyatt hotel and those of a caterer based in Nassau, Six Stars Catering.
FTX executives and/or employees therefore had a good range, and perhaps some crazy ideas. The company would also have spent $3.9 million for flightsand more than $500,000 for” shipping and delivery costs “.
These expenses are to be compared with the facts reported by the Financial Times of London. The media reported that FTX chartered private planes for carry parcels from amazon from Miami, because the e-commerce giant didn’t deliver to the Bahamas.
FTX has therefore fattened some of its managers and/or employees in the face of these abuses, which may partially explain the cryptocurrency exchange’s failure. And although he now has to answer for his actions before American justice, Sam Bankman-Fried he continues to lead a relatively comfortable lifestyle at his parents’ residence in California.
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