- SBF accumulated $300 million out of the $420 million funded by the company.
- FTX raised the amount the last October for the establishment of the business.
- The amount was a partial reimbursement of money SBF had spent to buy out Binance’s stake in Finance, according to the records.
It had been reported that almost $300 million had been accumulated by Sam Bankman-Fried, the former CEO of FTX, out of the total amount of $420 million funded by FTX.
In October 2021, the company raised the amount claiming that the money would help establish the business and facilitate better trading facilities. On reviewing the records, it was identified that nearly one-third of the amount had been taken by SBF.
According to the financial records obtained by The Wall Street Journal, “Mr. Bankman-Fried told investors at the time it was a partial reimbursement of money he’d spent to buy out rival Binance’s stake in FTX a few months earlier”.
Previously, prior to the funding, SBF had hold of the around 15% of Binance’s stake in the company, paying around $2.1 billion to Changpeng Zhao, Binance’s CEO.
It is estimated that SBF has utilized the amount on political donations, the purchase of Robinhood markets, and some other commitments. The large amount also throws light on the swirl of money between the former FTX CEO and his multiple entities.
Currently, the funds and deals that FTX and its former CEO were having are under scrutiny. The executives of FTX and Alameda Research mentioned that there is a funding gap of almost $8 billion for FTX after providing customer funds to Alameda.
Notably, the current CEO of FTX questioned the company’s financials and assured that the procedures would involve a “comprehensive, transparent and deliberate investigation into claims against Mr. Samuel Bankman-Fried” and other people involved.
While concluding the report, it had been mentioned that the further details of the amount are undeterminable as the 2021 audit of FTX only stated that “the money was retained by the company for operational expediency on behalf of a related party”.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
