Crypto Exchange FTX Spent 40M In 9 Months On Bahamas
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Crypto Exchange FTX Spent $40M In 9 Months On Bahamas Hotels And Staff Entertainment

Cryptocurrency exchange FTX, which filed for bankruptcy last November, not only used customer funds for shady transactions and buying expensive real estate for employees, but also spent them liberally to pay for employees’ lodging in expensive hotels in the Bahamas and their travel and meals .

    Image source: FTX

Image source: FTX

According to documents filed with the Delaware (USA) bankruptcy court, with which met Insider, FTX’s Bahamas unit, spent $40 million on hotel accommodations, entertainment and flights in just over nine months.

Lawyers found that the “daughter” of crypto exchange FTX Digital Markets Ltd. based in the Bahamas. received no revenue from customers, but generously spent investors’ funds. Between January and September 2022, the company spent $15.4 million to provide luxury hotels, homes and apartments for its employees.

The bulk of that amount, about $5.8 million, was spent on staff at the oceanfront Albany Hotel, which has its own marina and golf course. $3.6 million was spent on the 4-star Grand Hyatt, where the cheapest room is $369 per night, and another $800,000 was spent on the five-star Rosewood Hotel, where accommodation costs at least $1,100 per night. Sam Bankman-Fried, co-founder and former CEO of FTX, lived in a $30 million penthouse at the Albany Bahamas resort before his arrest.

FTX also spent $6.9 million on “food and entertainment,” according to court documents. Another $3.9 million was spent on flights and more than $500,000 on “postage and shipping”.

Sam Bankman-Fried faces eight counts, including wire fraud and illegal campaign finance. If proven guilty on all charges, Bankman-Fried faces up to 115 years in prison. However, the former FTX CEO refused to plead guilty to all charges.

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Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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