- The sum owed to the resort named for Buffett’s single comes as more than ten times what was thought – with the hotel claiming it’s still owed from $599,409
- Court documents filed in federal court this week laid bare the firm’s lavish spending, with employees reportedly staying for months at suites at the resort
- In addition to the prolonged stays, the filing alleges that FTX staffers at its office in Chicago also racked up a $400,000 Doordash bill in the span of a few months
Defunct cryptocurrency exchange FTX owes Jimmy Buffett’s Margaritaville resort an eyewatering $600,000, court papers unveiling the firm’s lavish spending have revealed – as well as a $403,765 bill racked up on the delivery app DoorDash.
The sum owed to the oceanside retreat named for Buffett’s hit single comes as more than ten times what was previously thought – with the Bahamas hotel claiming it’s still owed $599,409 from Sam Bankman-Fried‘s embattled hedge fund, which filed for bankruptcy last November.
At the time, reports indicated the Nassau resort – set on the opposite side of the isle from FTX’s sprawling offices – was seeking $55,319 from the firm’s sister exchange Alameda research, which was also owned by the 31-year-old alleged fraudster.
Now, court documents filed in federal court this week show the sum was as a stark underestimation, with employees reportedly staying for weeks – or in some cases months – at posh luxury suites at the plush resort.
In addition to the prolonged stays, the filing alleges that FTX staffers at its US office in Chicago also racked up an astounding $400,000 DoorDash bill in the span of a few months, after its more than 75 employees allowed three meals a day all on the company’s dime.
Meals paid for by the company reportedly consisted of $56 plates of New York strip steak and lobster, which even if ordered three times in a day, would not exceed a reported $200 daily food credit offered by FTX.
Taking into account the aforementioned employees, the court documents indicate that FTX offered a $15,000 allowance in DoorDash food delivery credits every day, before the firm would ultimately declare bankruptcy.
Several of those nixed staffers revealed to the Financial Times earlier this year that FTX had been giving employees the generous food stipend, which Bankman-Fried at the time insisted would be covered by the company.
Fast-forward a few months later, and that firm no longer exists, and its disgraced founder has traded his posh island digs for his parent’s home in the Bay Area, where he remains under house arrest after being released on $250million bond.
Since his release late last year, FTX and Almada’s spending has since been met with scrutiny, with federal investigators unmasking some of the over-the-top amenities Bankman-Fried promised to provide before his house of cards ultimately fell.
Those amenities reportedly included free groceries, a complimentary barbershop, and bi-weekly massages at the glitzy, 9,000 square foot American office – which FTX was set to ditch just months it suddenly collapse, in favor for a multimillion-dollar headquarters in a 35-story tower in Miami.
The newly released court documents, which were filed in Delaware bankruptcy court, further revealed the enormous DoorDash bill, nearly $50,000 of which has yet to be paid.
The filing, which was obtained and viewed by Insider, showed bills of a combined $403,765 from the food delivery giant garnered by various FTX entities.
The lion’s share of the bill was paid was paid off by the entity that controls FTX US – West Realm Shires Services – who offered up $357,526 between May and July 2022.
The documents indicate the food delivery company is still owed $46,239 by FTX investment arm Alameda, though DoorDash has yet to speak on those claims.
In a statement to Insider, DoorDash confirmed FTX US had been a customer of DoorDash’s business package, dubbed ‘DoorDash for Work, our employee benefit product.’
Wednesday’s court filings also unmasked the full financial damage incurred by FTX Bahamas workers at Buffet’s five-star retreat – where staffers reportedly stayed ‘for weeks or months’ in about 20 suites at One Particular Harbor, whose price-tags range from $365,000 to more than $6million.
In statements provided to Bloomberg, staffers at Buffet’s resort revealed the arrangement, claiming staffers would regularly file into a shuttle bus at the start of the workday to leave Margaritaville, before returning on the bus at the end of the day to their complimentary digs at the other end of the island.
The trip would take roughly 30 minutes, staffers said at the time.
The recent revelations concerning FTX’s spending comes as lawyers handling its Chapter 11 case have revealed some of the questionable practices Bankman-Fried had in place when it came to money.
According to court documents, staffers submitted expenses through online chat platforms, which managers would regularly approve with emojis.
One employee told The Financial Times: ‘It just kind of went crazy. If Sam said OK, it was good to go. Regardless of the amount.’
Attorneys also recently revealed that FTX would regularly charter private planes to fly Amazon packages from Miami to staff at its Bahamas headquarters, all because the company would not deliver to the island.
Moreover, it was unveiled that Bankman-Fried and his colleagues also utilized company funds to purchase $300 million in luxury real estate on the island nation, as well as high-end properties in the exclusive Albany community.
Bankman-Fried is currently facing several federal charges related to FTX’s collapse as he is accused of looting the platform for personal gain as well as securities fraud.
He has pleaded not guilty and is detained at his parents’ house in California until the trial starts in October.