- Just nine months prior to the collapse of the exchange, court documents showed that FTX’s Bahamian subsidiary spent a stunning sum of money on opulent hotels, lodging, travel, and meals.
- FTX Digital Markets spent $40 million between January and September 2022, according to bankruptcy court documents analyzed by Business Insider.
- This was only two months before the company filed for bankruptcy, alleging liquidity concerns.
More information about the crypto business has been revealed as the FTX controversy continues. Details about how user funds were used last year came to light while Sam Bankman-Fried was under house arrest. According to court documents, millions of dollars were spent on lodging, transportation, and meals.
According to reports, SBF’s defunct empire ate up $40 million between January and September 2022.
Recent sources claim that of those above $40 million, $15 million was spent on accommodations and opulent hotels. A staggering $5.8 million was given to only one Albany hotel. SBF’s $30 million penthouse was situated at the same resort. SBF was detained on the same premises. This should be mentioned.
It did not end there. Costing roughly $3.6 million, the four-star Grand Hyatt hosted the British royal family in March. The five-star Rosewood resort also received an investment from FTX of $800,000. One night at the Rosewood costs $1,100 in particular.
According to the data, $6.9 million was spent on meals and entertainment, with catering services making up roughly half of that total. It was discovered that SBF frequently spent $2,500 on meals at the Nassau cafe for both himself and his staff.
Flights cost around $4 million, and mail and delivery alone cost more than $500,000. An earlier Financial Times investigation revealed that FTX used private planes located in Miami to transport Amazon cargo into the Bahamas.
Additionally, FTX gave a lot of money to Bahamas-based charities and organizations.
According to a January 8 article in local media, there have been rumors that some of these donations may need to be returned as the Caribbean island nation tries to move on.
On January 3, Bankman-Fried submitted a not-guilty plea to eight criminal accusations before the U.S. District Court for the Southern District of New York.
Former FTX U.S. President To Put SBF In More Trouble?
Today’s news focused on Brett Harrison, the former president of FTX U.S. Many executives came under fire from the crypto community after the collapse of the FTX enterprise. Harrison was questioned on Twitter about what was going on at FTX. In response, the previous president of FTX in the United States tweeted further.
Sam Bankman-Fried, the former CEO of FTX, is scheduled to appear in court in the Bahamas on Monday to change his mind and agree to be extradited to the U.S., a person with knowledge of the situation told CNN.
According to the source, Bankman-Fried is anticipated to consent to extradition to the U.S. Reuters initially published the news that Bankman-Fried would end his extradition battle on Monday.
The exact moment that Bankman-Fried will show up in court is still unknown. SBF would immediately return to the United States if he waived his extradition. SBF will appear before a U.S. court for an arraignment and bail hearing once he arrives.
Conclusion
SBF spent more than $15 million on upscale lodging, $5.8 million of which was spent at the Albany Hotel, one resort. According to the article, Sam Bankman-Fried resided in his $30 million apartment at this luxurious resort until his arrest.
The Grand Hyatt, a four-star hotel that entertained British royalty in March, cost about $3.6 million. Additionally, the five-star Rosewood resort received an expenditure of $800,000.
