Bankruptcy court documents showed that FTX Digital Markets had disbursed $40 million from January to September 2023, only a couple of months prior to its bankruptcy declaration due to liquidity problems.
The money was used for a range of indulgences, such as luxury hotel and accommodation ($15 million), catering services ($3.5 million), flights ($4 million), and postage and delivery ($500,000).
The company also provided its Bahamian employees with cars, gas, and free trips to any of its offices around the world.
According to a December 2023 article in the Financial Times, former FTX CEO Sam Bankman-Fried lived in a $30 million penthouse at the Albany Hotel.
Additionally, FTX made various donations to charities and organizations in the Bahamas. An ex-employee later described the company’s culture as “cult-like” and “moronically inefficient.”