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

A brand new report by the Wall Avenue Journal claimed that the disgraced founder and former CEO of FTX took over 70% of the funds gathered from a funding spherical in October final yr.

He used the Binance buyback deal to justify his actions.

• CryptoPotato reported the fundraising spherical in October 2021 when FTX closed a $420.69 million Sequence B-1, bringing its whole valuation to $25 billion on the time. Apart from the weird and meme quantity, the spherical noticed the participation of precisely 69 traders.
• Sam Bankman-Fried advised traders again then that the funds will probably be primarily used to interact with regulators and enhance normal person expertise in addition to the general platform efficiency.
• Whereas these guarantees had been fairly extraordinary, the WSJ’s report claims that a lot of the cash went in one other course – to SBF himself.
• Based on paperwork seen by WSJ, SBF bought a portion of his stake within the firm and cashed out $300 million out of the $420 million.
• He defined to traders that he took that funds as a “partial reimbursement” of cash he spent from his personal pocket to purchase again an organization stake from Binance.
• Recall that CZ’s change was the primary exterior investor in FTX just a few years again, however issues between the 2 crypto moguls started to deteriorate final yr.
• Based on some reports, Binance ghosted FTX when the latter was attempting to get a license in Gibraltar, which prompted SBF to purchase again the previous’s stake in his firm.
• FTX’s downfall may be attributed to some extent to Binance, whose CEO stated they had been going to promote their FTT tokens resulting from “latest revelations” two weeks in the past. This brought on a domino impact, which resulted in a liquidity disaster for FTX, and the last word collapse.