Crypto exchange FTX founder splurged millions on private jets before collapse

Crypto exchange FTX founder splurged millions on private jets before collapse

FTX, a top cryptocurrency exchange, and its founder, Sam Bankman-Fried, reportedly splurged millions on charter private jets for travel and package delivery before its collapse.

What happened : FTX shelled out an estimated $15 million on private jet services, specifically from a Bahamian airline named Trans Island Airways. Bankman-Fried's substantial expenses allowed him to make multiple visits to Washington, D.C.

TIA also played a crucial role in ensuring FTX's Amazon packages arrived from Florida to the Bahamas, given Amazon didn't deliver to the Caribbean nation, according to an insider report.

A recent court filing uncovered an informal agreement between TIA's CEO and Bankman-Fried. Under the terms of the arrangement, FTX extended a loan of $28.4 million to TIA, enabling the purchase of two luxury jets.

At least 21 flights had Washington, D.C. as the destination or starting point.

The trips are especially significant, since political contributions made by FTX executive firms will be used as evidence against Bankman-Fried, whose trial is slated to kick off next week.

Prosecutors believe Bankman-Fried made a plan to channel $100 million of the company's money to political rivals and politicians. This maneuver was allegedly crafted to curry favor with lawmakers.

While Ryan Salame, the former chief executive of FTX, has admitted to violating campaign finance laws, Bankman-Fried has vehemently denied all allegations. The pair could be facing a prison sentence exceeding a century if convicted.

This content was partially produced by AI tools and was viewed and published by Benzinga editors.