CEO of FTX Sam Bankman-Fried testifies during a hearing before the House Financial Services Committee at Rayburn House Office Building in Washington D.C. in 2021. He faces charges of Gross misconduct. ALEX WONG/GETTY IMAGES.
NASSAU, The Bahamas — Before its collapse, FTX, a leading cryptocurrency exchange, and its founder Sam Bankman-Fried reportedly splurged millions on chartered private jets for travel and package deliveries.
What Happened: FTX shelled out an estimated $15 million on private jet services, specifically from a Bahamian airline named Trans Island Airways (TIA). This hefty expenditure enabled Bankman-Fried to make multiple trips to Washington, D.C.
“Interestingly, TIA also played a pivotal role in ensuring FTX’s Amazon packages made their way from Florida to the Bahamas, given that Amazon didn’t deliver to the Caribbean country,” said an Insider.
The outlet noted that a recent court filing unveiled an informal agreement between Bankman-Fried and TIA’s CEO. Under the terms of the arrangement, FTX extended a loan of $28.4 million to TIA, facilitating the purchase of two luxury jets.
Bankman-Fried’s air travels with TIA reportedly included 36 trips on a Learjet 60, with each journey costing between $20,000 and $30,000. At least 21 flights had Washington, D.C. as the destination or starting point.
The D.C. trips are especially significant, since political contributions made by FTX executives will be used as evidence against Bankman-Fried, whose trial is slated to kick off next week.
“Bankman-Fried devised a strategy to channel $100 million of FTX’s funds to politicians. This maneuver was allegedly crafted to curry favor with lawmakers,” contend the Prosecutors.
While Ryan Salame, the former head of FTX’s Bahamian entity, has confessed to violating campaign finance laws, Bankman-Fried has vehemently denied all allegations. The latter could be staring at a prison sentence exceeding a century if convicted.
An American investor and entrepreneur, Bankman-Fried, or SBF, was the founder and CEO of FTX, the cryptocurrency exchange and associated trading firm of Alameda Research. Both collapsed resulting in chapter 11 bankruptcy in late 2022.
© 2023 Zenger News.com. Zenger News does not provide investment advice. All rights reserved.
Produced in association with Benzinga
Edited by ISAAC OKOTH NYAMUNGU and Newsdesk Manager
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