Former FTX CEO Sam Bankman-Fried Reportedly Spent $2,500 On Food — A Day — in The Bahamas. He Also Owned $40 Million Penthouse.

Crypto exchange FTX and its affiliated ventures went up in flames this month, but Bankman-Fried was reportedly living lavishly in the Bahamas right before it all went down.

learn more about Gabrielle Bienasz

By Gabrielle Bienasz • Nov 22, 2022

Bloomberg I Getty Images
Sam Bankman-Fried.

The crypto emperor may have had no clothes, but he reportedly had fancy dinners.

Disgraced crypto exchange FTX, run by previous crypto "white knight" Sam Bankman-Fried, filed for bankruptcy earlier this month amid concerns about a bank run on the platform and billion-dollar holes in its balance sheet.

He was ousted from the company after the bankruptcy filing despite continuing to try and raise money to make it an alternative offer in the legal process.

Either way, according to reports from Fox Business and New York Magazine, Bankman-Fried and staff were living a high-flying lifestyle in the Bahamas — including buying yachts and spending thousands on daily lunches — and not so much worried about cash flow, apparently.

FTX is based in the Bahamas (but reportedly never started building its supposed-$60-million headquarters in the country). The Bahamian unit specifically filed for bankruptcy via Chapter 15 on in New York last week. It is also being investigated in the country.

Related: FTX Owes Approximately $3.1 Billion to 50 Biggest Creditors

FTX is also currently going through bankruptcy proceedings in Delaware, with a hearing in the court Tuesday in which a lawyer for FTX said "a substantial amount of assets have either been stolen or are missing," per the New York Times.

Bankman-Fried treated the company like his "personal fiefdom," the lawyer added.

In its first-day bankruptcy filing, John Ray III, who took control of the company after the bankruptcy filing and is a known cleaner up of corporate messes, wrote that "never in my career have I seen such a complete failure of corporate controls."

Related: 'A Complete Failure of Corporate Control': FTX Corporate Attacks Sam Bankman-Fried in Bankruptcy Filing

FTX Group used "corporate funds" to "purchase homes and other personal items," the filing added. It has come out that Bankman-Fried and associated people owned hundreds of millions in real estate in the country.

Reports have offered some more vivid images of the life of luxury that came before the fall. Fox Business reported that Bankman-Fried would spend $2,500 a day at a fancy restaurant on New Providence Island, Cocoplum, per restaurant staff. The minimum entree at the restaurant is over $20.

In total, staff added, catering to the FTX office — and they were not, apparently, the only restaurant around doing so — would come to $10,000 a day, the outlet added.

The billionaire also stays at a $40-million penthouse on the island. Crucially, it is located in a lavish community known as Albany Marina, where a one-night stay in the attached hotel is about $3,000, per New York. You also cannot enter unless you're a member.

The outlet also noted area realtors profited off FTX and related entities' lavish spending. "The Realtors here never made so much money in their life," a developer told New York.

It also looks like Bankman-Fried was a man about the (ocean) town. One yacht owner told Fox Business, he used to see Bankman-Fried on his 52-foot boat all the time. "Since all that happened, nobody's seen him," he told Fox. "I park my boat right there. Used to see him every day."

Related: 'I'm Sorry. That's The Biggest Thing.' Sam Bankman-Fried and Cryptoworld Lose Big in FTX Meltdown, Company Files For Bankruptcy.

The cracks started to show in FTX's empire when Coinbase reported on the proliferation of FTX's own crypto in Alameda's balance sheet in early November, which led to panic and a bank run on the platform, as well as the proposed and then discarded acquisition by Binance.

The company then collapsed under the weight of increased scrutiny and customer panic and withdrawals, leading to the bankruptcy filing.

Gabrielle Bienasz

Entrepreneur Staff

Gabrielle Bienasz is a staff writer at Entrepreneur. She previously worked at Insider and Inc. Magazine. 

Related Topics

Editor's Pick

Have More Responsibilities at Work, But No Pay Bump? Use This Script to Get the Raise You Deserve.
Black and Asian Founders Face Opposition at All Levels — Here's Why That Has to Change
Business News

Frontier Airlines Just Announced Its All-You-Can-Fly Summer Pass for $399. What's the Catch?

As travel begins to pick up, the airline hopes unlimited travel will jumpstart its business.

Growing a Business

5 Trends Redefining Business For Entrepreneurs

It could be another difficult year for entrepreneurs and business owners, but with a little preparation and commitment, you can put yourself in a position to come out on top.

Franchise

The Only 6 Strategies You Need If You Want Your Food Franchise to Thrive

In a time of complicated supply chains and rising food costs, you need to implement these tips if you want your franchise brand to grow.

Thought Leaders

5 Small Daily Habits Self-Made Millionaires Use to Grow Their Wealth

We've all seen what self-made millionaires look like on TV, but it's a lot more subtle than that. Brian Tracy researched what small daily habits these successful entrepreneurs adopted on their journey from rags to riches.