Summary:
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 0.69 million Series B-1, bringing its total valuation to 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
Topics:
Jordan Lyanchev considers the following as important: AA News, FTX Exchange, Sam Bankman-Fried (SBF), social
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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 0.69 million Series B-1, bringing its total valuation to 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
Topics:
Jordan Lyanchev considers the following as important: AA News, FTX Exchange, Sam Bankman-Fried (SBF), social
This could be interesting, too:
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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.
- He explained to investors that he took that funds as a “partial reimbursement” of money he spent from his own pocket to buy back a company stake from Binance.
- Recall that CZ’s exchange was the first outside investor in FTX a few years back, but things between the two crypto moguls began to deteriorate last year.
- According to some reports, Binance ghosted FTX when the latter was trying to get a license in Gibraltar, which prompted SBF to buy back the former’s stake in his company.
- FTX’s downfall could also be attributed to some extent to Binance, whose CEO said they were going to sell their FTT tokens due to “recent revelations” two weeks ago. This caused a domino effect, which resulted in a liquidity crisis for FTX, and the ultimate collapse.