The Crypto Emperor might not have clothes, but he would have had fancy dinners.
Disgraced crypto exchange FTX, run by former crypto “white knight” Sam Bankman-Fried, filed for bankruptcy earlier this month amid concerns about a bank on the platform and billion dollar holes in its balance sheet.
He was ousted from the company after the bankruptcy filing as he continued to try to raise funds to make it an alternative offer in the legal proceedings.
Anyway, according to reports from Fox Business and New York Magazine, Bankman-Fried and staff lived a high-flying lifestyle in the Bahamas — including buying yachts and spending thousands of dollars on daily lunches — and apparently didn’t worry too much about cash flow.
FTX is based in the Bahamas (but reportedly never started building its supposed $60 million headquarters in the country). The Bahamas unit specifically filed for Chapter 15 bankruptcy in New York last week. It is also being studied in the country.
Related: FTX Owes About $3.1 Billion To Top 50 Creditors
FTX is also currently undergoing bankruptcy proceedings in Delaware, with a court hearing on Tuesday in which an attorney for FTX said “a significant amount of assets have been stolen or are missing,” according to the New York Times.
Bankman-Fried treated the business as his “personal fief,” the attorney added.
In his first-day bankruptcy filing, John Ray III, who took over the business after the bankruptcy filing and is a known cleaner of the company’s messes, wrote that “never in my career did I have seen such a complete failure of corporate controls.”
Related: ‘A complete failure of corporate control’: FTX Corporate sues Sam Bankman-Fried in bankruptcy case
FTX Group used “corporate funds” to “purchase homes and other personal items,” the filing adds. It emerged that Bankman-Fried and associated individuals owned hundreds of millions of real estate across the country.
Reports offered more vivid images of luxury living leading up to the fall. Fox Business reported that Bankman-Fried would spend $2,500 a day at a posh New Providence Island restaurant, Cocoplum, per restaurant staff. Minimum restaurant entry is over $20.
In total, staff added that dining at the FTX office — and they apparently weren’t the only restaurant to do so — would cost $10,000 a day, the outlet added.
The billionaire is also staying in a $40 million penthouse on the island. Basically, it’s located in a plush community known as Albany Marina, where a one-night stay at the attached hotel costs around $3,000 per New York. You also cannot participate unless you are a member.
The outlet also noted that real estate agents in the area have benefited from lavish spending by FTX and related entities. “Realtors here have never made so much money in their lives,” said a developer New York.
It also appears that Bankman-Fried was a (oceanic) city man. A yacht owner told Fox Business he used to see Bankman-Fried on his 52ft boat all the time. “Since everything that’s happened, no one has seen it,” he told Fox. “I park my boat right there. I used to see it every day.”
Related: ‘I’m sorry. It’s the biggest thing. Sam Bankman-Fried and Cryptoworld Lose Big in FTX Meltdown, Company Files for Bankruptcy.
The cracks began to appear in the FTX empire when Coinbase reported the proliferation of FTX’s own crypto on Alameda’s balance sheet in early November, leading to panic and a bank on the platform, as well as the proposed and then abandoned acquisition by Binance.
The business then collapsed under the weight of increased surveillance, panic and customer withdrawals, which led to the filing for bankruptcy.