Insiders including CEO Ivan Soto-Wright reportedly cashed in on $150 million in stock, marking a large payout that didn’t return to the company’s coffers
Crypto’s spike saw some major insiders make substantial play. MoonPay, a cryptocurrency payments startup, announced a massive $555 million fundraising round in November 2021, amid the Bitcoin frenzy hitting an all-time high of nearly $69,000.
According informationinsiders took in $150 million in stock, with CEO Ivan Soto-Wright among the top sellers.
For context, MoonPay is a cryptocurrency infrastructure company, offering a payment gateway for crypto businesses. Its platform facilitates digital asset transactions, making it easy for users to purchase cryptocurrencies like Bitcoin. In 2021, the company attracted particular attention for its non-fungible token (NFT) “concierge” service, praised by celebrities like Jimmy Fallon and Paris Hilton.
The fundraising saw a strong valuation of $3.4 billion for MoonPay, led by high-profile investors.
Of the total raised, $405 million came from selling shares to investors, but the remaining $150 million came from insiders cashing in their shares in a secondary transaction, as reported by The Information. This means that a significant portion of the funds raised did not return to the company.
In a interview with CoinDesk, MoonPay co-founder and CEO Ivan Soto-Wright hinted that the company’s intention was to leverage the funding to expand its workforce and expand its geographic reach, among other things.
However, Soto-Wright reportedly used some of his windfall to purchase a $38 million mansion in Miami, hinting at the luxurious lifestyle offered by the crypto boom.