The crypto emperor may have had no clothes, but he reportedly had fancy dinner parties.
Disgraced crypto exchange FTX, run by former crypto “white knight” Sam Bankman-Fried, filed for bankruptcy earlier this month over concerns over a bank run on the platform and billions of dollars holes in its balance.
Despite the bankruptcy filing, he was kicked out of the company Get on to try and raise money to make it an alternative offering in the legal process.
Anyway, according to reports from Fox business and New York MagazineBankman-Fried and staff lived a high-flying lifestyle in the Bahamas — including buying yachts and spending thousands on daily lunches — and apparently weren’t too concerned about cash flow.
FTX is based in the Bahamas (but Reportedly never started construction of the supposed $60 million headquarters in the country). The Bahamian unit has specifically filed for bankruptcy through Chapter 15 in New York last week. Research is also being done in the country.
Related: FTX owes about $3.1 billion to 50 largest creditors
FTX is also currently going through bankruptcy proceedings in Delaware, with a court hearing Tuesday in which an attorney for FTX said “a significant number of assets have been stolen or are missing,” per the New York Times.
Bankman-Fried treated the company as his “personal fiefdom,” the lawyer added.
In the first day of the bankruptcy filing, John Ray III, who took control of the company after the bankruptcy filing and is known as a well-known company clutter cleaner, wrote that “never in my career have I seen such a complete failure of corporate controls. “
Related: ‘A complete failure of corporate control’: FTX Corporate attacks Sam Bankman-Fried in bankruptcy filing
FTX Group used “corporate funds” to “purchase homes and other personal items,” the filing added. It has to come outside that Bankman-Fried and associated people owned hundreds of millions of real estate in the country.
Reports have yielded some more vivid images of the luxury life that came before the fall. Fox Business reported that Bankman-Fried would spend $2,500 a day at an upscale New Providence Island restaurant, Cocoplum, per restaurant staff. The minimum entree in the restaurant is over $20.
In total, added staff, catering to the FTX office — and they apparently weren’t the only restaurant to do so — would amount to $10,000 a day, the outlet added.
The billionaire also resides in a $40 million penthouse on the island. Crucially, it’s located in a lavish community known as Albany Marina, where a one-night stay at the adjacent hotel costs around $3,000 per person. New York. You also cannot participate unless you are a member.
The outlet also noted that area brokers benefited from the lavish spending of FTX and related entities. “The realtors here have never made so much money in their lives,” said one developer New York.
It also seems that Bankman-Fried was a man in the (sea) city. A yacht owner told Fox Business that he used to see Bankman-Fried on his 16-foot boat. “Since all that happened, no one has seen him,” he told Fox. ‘I park my boat there. I saw him every day.’
Related: “I’m sorry. That is the most important.’ Sam Bankman-Fried and Cryptoworld Lose Big in FTX Meltdown, Company Files for Bankruptcy.
The cracks began to show in the realm of FTX when Coinbase reported about the proliferation of FTX’s proprietary crypto on Alameda’s balance sheet in early November, sparking panic and a bank run on the platform, as well as Binance’s proposed and subsequently rejected takeover.
The company subsequently collapsed under the weight of increased scrutiny and customer and withdrawal panic, leading to its bankruptcy filing.