A new report from the Wall Street Journal claims that the disgraced founder and former CEO of FTX acquired more than 70% of the money raised from a funding round last October.
He used the Binance buyback deal to justify his actions.
- encrypted potatoes The fundraising round mentioned in October 2021 when FTX closed $420.69 million in Series B-1, bringing the total valuation to $25 billion at that time. Excluding the unusual amount and number of members, exactly 69 investors participated in the round.
- Sam Bankman-Fried told investors at the time that the money would primarily be used to work with regulators and improve the general user experience as well as the overall performance of the platform.
- While these undertakings were fairly popular, a Wall Street Journal report claims most of the money went in another direction – to the SBF itself.
- According to documents seen by the Wall Street Journal, SBF sold a portion of its stake in the company and cashed out $300 million of $420 million.
- He explained to investors that he took this money as a “partial repayment” of the money he spent out of his own pocket to buy back a company stake in Binance.
- Remember, CZ Exchange was the first outside investor in FTX a few years ago, but things between the two cryptocurrency poles started to sour last year.
- According to some reports, Binance hid FTX when the latter tried to obtain a license in Gibraltar, prompting the SBF to buy back the former’s stake in his company.
- FTX’s downfall can also be partially attributed to Binance, whose CEO said it would sell FTT tokens due to “recent revelations” two weeks ago. This caused a domino effect, leading to a liquidity crisis for FTX, and eventual collapse.
SBF After Cashing Out $300M After $420M FTX Fundraiser 2021: Report appeared first on CryptoPotato.