Cointime

  • BTC $16812.03 -0.01 %
  • ETH $1229.88 0.03 %
  • BCH $109.40 0.00 %
  • SOL $13.63 0.07 %
  • XRP $0.38 -0.08 %
  • BNB $283.10 -0.04 %

SBF Cashed Out $300M Following $420M FTX Fundraiser in 2021: Report

1 min read Original Link

A new report by the Wall Street Journal claimed that the disgraced founder and former CEO of FTX took over 70% of the funds gathered from a funding round in October last year.

He used the Binance buyback deal to justify his actions.

  • CryptoPotato reported the fundraising round in October 2021 when FTX closed a $420.69 million Series B-1, bringing its total valuation to $25 billion at the time. Aside from the unusual and meme amount, the round saw the participation of exactly 69 investors.
  • Sam Bankman-Fried told investors back then that the funds will be primarily used to engage with regulators and improve general user experience as well as the overall platform performance.
  • While those promises were quite ordinary, the WSJ’s report claims that most of the money went in another direction – to SBF himself.
  • According to documents seen by WSJ, SBF sold a portion of his stake in the company and cashed out $300 million out of the $420 million.

(By Jordan Lyanchev)

All Comments