As per the recent investigations carried out by the news media house, Wall Street Journal. It is revealed that the former CEO of FTX Sam Bankman was able to cash out most of the investments which he was able to get into his FTX platform. This investment accounts for approximately 70%, which equals $300M out of $420M from all the investors who invested in his series B-1 last year in October.
What is FTX?
FTX is the cryptocurrency exchange platform that was established approximately three years ago by Sam Bankman. San Bank man has been working with US investment firms before the establishment of FTX company and FTX sister company Almeda Research. The investment and auditing loopholes in these two companies of the FTX group led to the monetary crunch for further operations into FTX and FTX company completely collapsed after just one tweet by its Rival crypto company Binance.
Binance CEO in a tweet mentioned the unregulated monetary operations in the company, he further mentioned that they will be offloading all the FTT tokens issued by the FTX platform which led to the sudden withdrawals from the FTX platform this rippled down into the monetary branch at FTX platform.
The FTX platform has to freeze the withdrawal requests and at one point the FTX platform collapsed to continue blocking its withdrawal request. The company filed bankruptcy protection last week on Friday. The new CEO of FTX, John Ray is working on the restructuring of the padded platform.
What financial mischiefs happened in FTX?
FTS platform was able to receive approximately $420.69 million in it is in its series B-1 round in October 2021 with a company valuation of $25 billion at that time and exactly 69 investors invested in that round. Sam Bankman mention that he and his company will be using these funds for the process of getting the regulatory approval for the platform in its global operation along with working on the User experience for the FTX platform.
According to the documents seen by the Wall Street Journal out of these $420 million dollars Sam Bankman sold approximately $300 million of his stake into the company can be cashed out these funds stating that he’ll be using these funds as a partial reimbursement of his investments into the FTX platforms foundation process.
The interesting fact is, a few years back, the Binance platform who can which has been responsible for the recent Revelations of the FTX platform was one of the foremost investors in the FTX platform.
