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FTX spent nearly $7 million on food and over $15 million on luxury Bahamian hotels in just 9 months, court documents show

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Sam Bankman-Fried and the Grand Hyatt Baha Mar in Nassau.Former FTX CEO Sam Bankman-Fried and the Grand Hyatt Baha Mar hotel in Nassau, Bahamas.

Gotham/GC Images; David Cannon/Getty Images

  • FTX’s Bahamian entity spent nearly $40 million on hotels, food, and travel in just nine months.
  • That’s according to documents filed in the Delaware bankruptcy court.
  • They show the company spent almost $6 million at a single hotel and $1 million on one caterer.

FTX spent $40 million in just over nine months on expenses including hotels, entertainment, and flights, according to bankruptcy court documents reviewed by Insider.

Lawyers pointed out that the crypto exchange’s Bahamian company, FTX Digital Markets, generated no customer revenue, but spent lavishly. 

From January to September 2022, the company spent $15.4 million on luxury hotels and accommodation, the filings say.

The largest chunk of that sum, around $5.8 million, was spent at the Albany Hotel – an oceanside resort with its own yacht marina and golf course. Sam Bankman-Fried, the cofounder and former CEO of FTX, lived in a $30 million penthouse in Albany until his arrest last month.

In 2021, one of the Albany’s founders told Fortune that in high season, accommodation at the resort can cost as much as $60,000 per night.

$3.6 million of FTX’s hotel spend went to the Grand Hyatt, a 4-star hotel where the cheapest room costs $369 a night. In March 2022, the hotel hosted the Caribbean reception for Prince William and Kate, Princess of Wales. FTX spent $28,954 at the hotel the same month.

The company also spent $800,000 at the five-star Rosewood, where one night costs at least $1,100.

William and Kate attend a reception at the Grand Hyatt Baha MarThe Prince and Princess of Wales attend a reception at the Grand Hyatt, the finale of their 2022 Caribbean tour.

Pool/Samir Hussein/WireImage

According to tech-tracking site Growjo, before filing for bankruptcy, FTX had around 1,310 employees, meaning an average of nearly $12,000 per staff member was spent on hotels across the nine months.

Insider previously reported that FTX’s sister company, Alameda, owes $55,000 to the Margaritaville beach resort founded by singer Jimmy Buffett. Resort staff told Bloomberg that FTX employees stayed in around 20 suites for several months, and they had plans to go out on the town together.

The filings reviewed by Insider also showed that FTX spent $6.9 million on “meals and entertainment.” Almost half of that was spent on catering services, with the largest amount, $1.4 million, spent on catering at the Hyatt. FTX also spent almost $1 million with a Nassau-based caterer called Six Stars Catering.

It’s unclear where the rest of the money was spent. Fox Business previously reported that Bankman-Fried often spent $2,500 on lunch for himself and staff at a Nassau bistro. 

A further $3.9 million was spent on flights, plus over $500,000 for “postage and delivery.” That could be related to a Financial Times report that FTX hired private planes to fly Amazon packages from Miami because it didn’t deliver to the Bahamas.

Bankman-Fried has pleaded not guilty to eight criminal charges including wire fraud and conspiracy to commit money laundering. He faces up to 115 years in prison if found guilty on all charges.

Lawyers for FTX and Bankman-Fried didn’t immediately respond to Insider’s request for comment, sent outside US working hours. 

Read the original article on Business Insider
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