The FTX Case and the Extravagant Spending that Outraged Creditors
While FTX creditors suffer heavy losses, the bankruptcy management team has been found splurging on luxury expenses, causing outrage in the community.
- Luxurious hotel expenses: This team often stays at 5-star hotels like Hotel Du Pont, Grand Hyatt, with one night in New York costing up to $971.74.
- Excessive taxi fares: One expert spent $1,733 on taxis in just one week. Even a 5-minute trip from the hotel to the court cost $151.33. The peak was $2,683 to hire a taxi to wait for CEO John Ray during his deposition.
- Business class plane tickets: Their flights cost up to $4,279 each, all taken from the bankruptcy fund.
These expenses are deemed brazenly wasteful, adding to the outrage of creditors – those who are still eagerly waiting day by day to receive compensation from FTX.
Currently, FTX is in the process of waiting for creditors to complete the necessary procedures (KYC, tax forms, distribution unit registration,...) before the deadline of January 20, 2025. After completion, it is expected that debts under $50K will be repaid within 60 days.
