FTX owes whopping $600K Margaritaville tab after already racking up a $400K DoorDash bill - Daily news 98
The amount owed to the resort named after Buffett’s song comes out to be more than ten times what was thought — with the hotel claiming it was still owed from $599,409. Court documents filed in federal court this week revealed the company’s exorbitant spending, with employees reportedly staying for months in suites at the... Court documents filed in federal court this week reveal that former cryptocurrency exchange FTX owes Jimmy Buffett’s Margaritaville Resort $600,000 after already racking up a $400K DoorDash bill. In addition to the extended stays, the filing alleges that FTX employees at its Chicago office also paid a $ 400,000 Doordash bill within a few months. Court documents also reveal that the Bahamas hotel claims it still owes $599,409 from Sam Bankman-Fried's embattled hedge fund, which filed for bankruptcy in November. FTX offered employees generous food stipends before the company eventually declared bankruptcy, and its disgraced founder has traded in his lavish island digs for his mother's. The filing also revealed the full extent of the financial damages incurred at the five-star retreat.
Published : a week ago by admin in Business
• The amount owed to the resort named after Buffett’s song comes out to be more than ten times what was thought — with the hotel claiming it was still owed from $599,409.
• None Court documents filed in federal court this week revealed the company’s exorbitant spending, with employees reportedly staying for months in suites at the resort.
• In addition to the extended stays, the filing alleges, FTX employees at its Chicago office also paid a $400,000 Doordash bill within a few months.
Defunct cryptocurrency exchange FTX owes Jimmy Buffett’s Margaritaville Resort $600,000, court papers revealing the company’s lavish spending — as well as a $403,765 bill racked up on delivery app DoorDash.
The sum owed for the oceanfront retreat named after Buffett’s single comes in at more than ten times more than previously thought — the Bahamas hotel claims it still owes $599,409 from Sam Bankman-Fried’s embattled hedge fund, which filed for bankruptcy in November. the past.
At the time, reports indicated that the Nassau resort — located just across the island from FTX’s sprawling offices — was seeking $55,319 from Alameda Research, which was also owned by the 31-year-old alleged fraudster.
Now, court documents filed in federal court this week show that was an understatement, with the staff reportedly staying for weeks — or in some cases months — in luxurious luxury suites at the luxury resort.
In addition to the extended stays, the filing alleges that FTX employees at its US Chicago office also racked up a staggering $400,000 DoorDash bill in the space of a few months, after more than 75 employees allowed three meals a day on all of the company’s employees. shark.
The meals the company paid for reportedly consisted of $56 New York steak and lobster, which even if ordered three times a day, would not exceed the $200 daily food credit provided by FTX.
With the aforementioned employees factored in, court documents indicate that FTX offered an allowance of $15,000 in DoorDash food delivery credits each day, before the company eventually declared bankruptcy.
Several of those dismissed employees revealed to the Financial Times earlier this year that FTX was giving employees generous food stipends, which Bankman-Fried insisted at the time the company would cover.
Fast forward a few months, that company no longer exists, and its disgraced founder has traded in his lavish island digs for his mother’s. His home is in the Bay Area, where he is still under house arrest after being released on $250 million bail.
Since his release late last year, FTX and Almada’s spending has since come under scrutiny, as federal investigators uncovered some of the superior amenities Bankman-Fried promised to deliver before the house of cards finally fell.
Those facilities reportedly included Free groceries, a free barbershop, and bi-weekly massages in the glitzy, 9,000-square-foot American office — which FTX was slated to abandon just months after it suddenly collapsed, in favor of a multimillion-dollar headquarters in a 35-story tower in Miami. .
Newly released court documents, filed in Delaware bankruptcy court, reveal DoorDash’s massive bill, nearly $50,000 of which was not paid.
The filing, obtained and viewed by Insider, showed combined bills of $403,765 from the food delivery giant that were acquired by various FTX entities.
The lion’s share of the bill was paid by the entity controlling FTX US – West Realm Shires Services – which bid $357,526 between May and July 2022.
Documents indicate that the food delivery company still owes $46,239 from investment firm Alameda to FTX, though DoorDash has yet to address those claims.
In a statement to Insider, DoorDash confirmed that FTX US was a customer of DoorDash’s business suite, dubbed “DoorDash for Work, our employee benefits product.”
Court filings on Wednesday also revealed the full financial damages FTX Bahamas workers incurred at the five-star Buffet retreat — where employees are said to have stayed “for weeks or months” in about 20 One Particular Harbor suites, which range in price from $365,000 to more. from $6 million.
In statements provided to Bloomberg, Buffet Resort staffers disclosed the arrangement, claiming that employees would regularly board a shuttle bus at the start of the workday to leave Margaritaville, before returning on the bus at the end of the day for their free digs at the other end of the island.
The staff said at the time that the trip would take about 30 minutes.
The latest revelations about FTX spending come as attorneys handling the Chapter 11 case revealed some of Bankman-Fried’s questionable practices when it came to money.
According to court documents, employees submitted expenses through online chat platforms, which managers regularly approved using emojis.
One employee told the Financial Times: “I got kind of crazy. If Sam said okay, I was good to go. No matter the amount.”
Lawyers also recently revealed that FTX would regularly charter private jets to fly Amazon packages from Miami to employees at its Bahamas headquarters, all because the company wouldn’t deliver them to the island.
Furthermore, it was revealed that Bankman-Fried and his associates also used company funds to purchase $300 million worth of luxury real estate in the island nation, as well as high-end real estate in the exclusive Albany community.
Bankman-Fried is currently facing multiple federal charges related to the FTX crash as he is accused of ransacking the platform for personal gain as well as securities fraud.
He pleaded not guilty and has been held at his parents’ home in California until the trial opens in October.