FTX: Sam Bankman-Fried allegedly embezzled funds from his own company

In October 2021, FTX successfully raised $420 million from 69 high-profile investors. Nearly three-quarters of that money is said to have been pocketed by Sam Bankman-Fried himself. Reason for the transaction: reimbursing the ex-billionaire in crypto. He who disbursed the funds necessary to buy Binance’s stake in his own exchange.

FTX, a den of cheats?

SBF mixes its portfolio with that of FTX

Digging through FTX’s financial records, The Wall Street Journal found that Sam Bankman-Fried will have enough to spend the rest of his life auspiciously with $300 million in his pocket. A sum taken from FTX after having successfully raised funds in October 2021.

At the time, the crypto business backed by BlackRock, Temasek, Tiger Global, Sequoia Capital, etc., was valued at $25 billion. Not thinking that FTX will go bankrupt a few months later, these investors had contributed voluntarily. Moreover, the purpose of this fundraising consisted in particular in accelerating the development of the company and in engaging much more with the regulators.

SBF was pleased with this trust granted by its partners on the occasion:

[FTX est] able to partner with investors who prioritize its positioning as the most transparent and compliant cryptocurrency exchange in the world. »

Sam Bankman-Fried, an undesirable leader?

After taking stock of the situation, John Ray III, the new CEO of FTX, said that:

[Je n’ai] never seen such a complete failure of corporate controls and such a complete absence of reliable financial information as here. »

Sorry for the new CEO of FTX

The post-SBF FTX currently intends to conduct a “ full, transparent and deliberate investigation into the claims against Mr. Samuel Bankman-Fried [et ses cofondateurs] “, he added.

The fate of the 300 million taken by Sam at the end of this round of funding remains unknown to certain FTX employees. CZ, to whom he suggested the buyout, however revealed in a tweet that the buyout had indeed taken place. His 15% stake in FTX was valued at $2.1 billion in BUSD and FTT.

Sequoia Capital, which is among the investors who backed FTX in 2021, has decided to reduce the value of its investment in this bankrupt company to zero. For him, this fundraising is nothing but a ” mining tower “. In fact, the numbers 420 forming the sum of the funds raised refer to the consumption of marijuana; And ” 69 “, the number of investors who have contributed, evokes debauchery. As for the money allegedly concealed by Sam Bankman-Fried, FTX says it was held in the name of a “related party” for reasons of ” operational convenience “.

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