Bankrupt or looted.. The founder of FTX spent millions on luxury apartments

Despite the passage of weeks since the declaration of bankruptcy, the controversy is still raging to find out the truth about what happened behind the scenes FTXOne of the largest cryptocurrency exchanges in the world.

The company’s lawyers alleged that CEO and founder Sam Pinkman Fried treated the corporation as a “personal fiefdom”, as he and a handful of colleagues plundered stock exchange coffers to spend as much as $300m on real estate in the Bahamas.

The bankruptcy team detailed the 30-year-old’s massive spending at a court hearing on Tuesday, according to the New York Post.

The details revealed rampant mismanagement by senior executives until the platform collapsed with the loss of more than $1 billion in client funds.

Spending $300 million

In addition, the lawyers said the $300 million spent on real estate was mostly used to buy mansions and beachfront vacation properties for Pinkman and other top company executives.

The purchases were not disclosed during a months-long media campaign in which Bankman-Fried portrayed himself as a social supporter of the Democrats.

Upscale Albany complex

Upscale Albany complex

In turn, attorney James Bromley of the law firm “Sullivan & Cromwell” said in a courtroom in Delaware that large sums were spent on things not related to work, under Pinkman’s supervision.

19 properties

The disclosure in a Delaware court followed an earlier Reuters report that revealed that Bankman’s parents, Stanford law professors Joseph Bankman and Barbara Fried, were among those who purchased luxury real estate in the Bahamas.

The report cited property records that showed Bankman and Fred co-signed the deed for a beach house in the exclusive gated community of Old Fort Bay, and the property was identified as the family’s “vacation home.”

Luxury penthouse in the Bahamas

Luxury penthouse in the Bahamas

In total, the report revealed records for at least 19 properties with a total value of nearly $121 million.

Millions of apartments on the beach

A unit of the company bought seven beachfront condos for about $72 million in the upscale Albany resort in the Bahamas, the same compound where Pinkman and his cohorts lived while running FTX and stricken cryptocurrency exchange Alameda Research.

While the disclosure of real estate was among the most notable details to come out of the hearing during what was already a chaotic bankruptcy process, company representatives plan to sell parts of the still-viable business.

FTX was valued at up to $40 billion across its holdings in America and abroad, and the figure highlighted the staggering extent of the company’s slide into bankruptcy in the wake of a sudden liquidity crunch earlier this month.

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