Bankman-Fried cashed out $300 million during FTX fundraise last year: WSJ

FTX founder Sam Bankman-Fried quietly cashed out $300 million in personal stakes in the midst of a $420 million fundraise in October 2021, the Wall Street Journal reported. The move was unusual in the world of startups, as founders don’t typically see a profit prior to investors.

The stock sale in October 2021 came during a six-month fundraising effort that brought in $2 billion from investors like BlackRock, Sequoia Capital and Temasek and that valued FTX at $25 billion, the Journal said. For its FTX shares, Binance received $2.1 billion in the form of BUSD and FTT tokens. Those FTT tokens seemed to become the catalyst for a market tip-off that something was off.

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