FTX spent a lot on opulent housing, travel, and dining in the nine months before to declaring bankruptcy in November 2022.
FTX spent $40 million on hotel, travel, and food between January and September of 2022, according to documents filed with the court. Later, alleging "liquidity concerns," the company declared bankruptcy in November of that same year.
Over 15 million dollars are spent on luxury hotels and other forms of lodging, while 5.8 million dollars are spent on a resort. The Grand Hyatt, a four-star hotel, hosted the British royal family in March, and it cost them a total of $3.6 million. The Rosewood resort, which has five stars, cost $800,000 to build.
An additional $7 million was spent on meals and entertainment, with more than half of that amount going toward food services, according to the documents that were submitted to the court. This data was derived from the expenses that were listed in the documentation. A typical airplane costs roughly $4 million, whereas mail and delivery each cost more than $500,000 per item.
Additionally, FTX offers unlimited, all-inclusive vacations to any office globally, as well as complete vehicles and gas for every employee, to its employees in the Bahamas.
A former FTX employee revealed the company's extravagant spending on luxuries in December, comparing it to the practices of an excessive and immoral cult. She also revealed the full amount of the business' extravagant spending on expensive goods.
