The post Former FTX CEO, Sam Bankman-Fried Cashed Out $300M to Buy Rival Binance’s Stake! appeared first on Coinpedia Fintech News
Ever since the FTX series has been playing within the crypto space, the participants are witnessing fresh new episodes every day. Recently, the exchange was reportedly “hacked” and more than $600 million in funds were squeezed out. Meanwhile, many believed it was the job of an insider as the stolen funds were quickly converted into Ethereum & stablecoins.
In a fresh update, SBF has reportedly received a portion of $420 million in funds into his personal account. FTX raised $420 million in funding in October last year to improve the user experience and be more in line with regulators. Interestingly, nearly 75% of the total amount was sent to SBF.
The October 2021 funding round valued FTX exchange at $25 billion and raised money from investors like BlackRock, Tiger Global, and Singapore’s sovereign wealth fund Temasek & Sequoia Capital. Later, after a couple of months, some of these investors helped raise $400 million for FTX’s subsidiary at an $8 billion valuation.
During the time funds were raised, the crypto markets were booming and the Alameda was highly profitable. While it is still unclear what SBF did with the $300 million, whether it was poured back to FTX or kept separate, Meanwhile, FTX’s 2021 audited financial statements said the money was being reserved by the company for ‘operational expediency’ on behalf of the related party.