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. https://www.theblock.co/post/188526/bankman-fried-cashed-out-300-million-during-ftx-fundraise-last-year-wsj