FTX Invested $200 Million In Mysten Labs And Dave Is Suspected Of Client Money

Key Points:

• FTX invested $200 million in Mysten Labs and Dave is suspected by the SEC of user funds
• This money is invested through a subsidiary of FTX
• If it can be confirmed then the customer can get the money back.

Of the billions of dollars in customer deposits that disappeared from FTX in the blink of an eye, FTX invested $200 million in Mysten Labs and Dave is being suspected by the SEC as customer funds, according to CNBC.

The U.S. Securities and Exchange Commission stated in two complaints that FTX and SBF are suspected of using client funds to make two $100 million investments through their subsidiaries.

Reportedly, in March, Dave, a fintech company that went public two months earlier through a special-purpose acquisition company, received a $100 million investment. At the time, the companies said they would “work together to expand the digital asset ecosystem.”

Web3 company Mysten Labs then received a $100 million investment in September of this year. Mysten is valued at $2 billion and in the investment round involved Coinbase Ventures, Binance Labs and Andreessen Horowitz’s crypto fund.

Although FTX Ventures has made dozens of deals, according to PitchBook, Mysten Labs and Dave’s investment are the only two investments disclosed of $100 million, based on documents published by the Financial Times, analyzed how the company put $5.2 billion to work. FTX Ventures is described as a $2 billion venture capital fund, in a press release with Dave.

Both Mysten Labs and Dave insist there is no connection to FTX misconduct, but they are two venture capital cases that have been publicly “disguised” by the US Securities and Exchange Commission, as is involved in FTX with funds suspected of belonging to customers.

So far, the law firm Sullivan & Cromwell representing FTX has not responded to a request for comment, and Mysten Labs also declined to comment on the matter, but CEO Dave Jason Wilk revealed that the company’s investment FTX is made through convertible bonds, not cash investments.

Sam Bankman-Fried, 30, is accused of widespread fraud after FTX, valued at $32 billion by private investors earlier this year, went bankrupt in November. allegedly how Bankman-Fried moved money from FTX to its hedge fund, Alameda Research, and then used that money for risky trades and loans. FTX Ventures is reportedly part of that plan.

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