SBF Pocketed $300 Million In FTX’s $420 Million Funding Round Last Year

After FTX completed a $420 million funding last October, the founder of SBF sold $300 million worth of company stock. At the time, Sam told investors that this was to compensate him for the cost of buying FTX shares held by competitor Binance a few months ago.

When FTX raised $420 million from a bunch of big-name investors last October, the crypto exchange said the money would go toward growing the business, improving the user experience and allow it to interact more with regulators.

According to The Wall Street Journal, citing people familiar with the matter, nearly three-quarters of the money, about $300 million, went instead to FTX founder Sam Bankman-Fried, who sold one his personal stake in the company, according to his financial records.

At the time, SBF told investors that this was to compensate him for the cost of buying FTX shares held by competitor Binance a few months ago.

It’s not clear what Sam did with the $300 million, while FTX’s 2021 audited financial statements show that the money is held by FTX on behalf of a “related party” for “operating convenience”.

In October 2021, FTX raised $420 million from a series of prominent investors including Temasek and Tiger Global, and FTX’s post-raising valuation reached $25 billion. In July 2021, SBF acquired approximately 15% of the FTX shares held by Binance.

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