FTX’s Sam Bankman-Fried cashed out $300M after fundraising round: report

Disgraced former FTX CEO Sam Bankman-Fried reportedly gave himself a $300 million windfall last year when his then-red-hot cryptocurrency exchange secured a massive fundraising round.

FTX raised $420,690,000 million from 69 different investors – both numbers clear nods to meme culture – during a Series B-1 financing round completed in October 2021. Participants included investment giants such as Sequoia Capital as well as the Ontario Teachers’ Pension Plan Board.

Of the massive total, $300 million went to Bankman-Fried after he sold a portion of his personal stake in FTX, the Wall Street Journal reported Friday, citing financial records and people familiar with the transaction.

In a press release at the time, Bankman-Fried said FTX was “able to partner with investors that prioritize positioning FTX as the world’s most transparent and compliant cryptocurrency exchange.”

The 30-year-old reportedly told investors the money was a partial reimbursement after he bought out rival platform Binance’s stake in FTX some months earlier.

The Journal said it was unable to determine what Bankman-Fried did with the $300 million – though a 2021 financial statement said the company kept the funds for “operational expediency” on behalf of a “related party.”

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