FTX Founder Sam Bankman-Fried Withdraws $300M Amid $420M Funding in October 2021, Wall Street Journal report
Bankman-Fried Tell investors at the time that the funds raised will be used for things like helping FTX grow and working with more regulators. Instead, most of the funds were used to buy back Binance shares in FTX, according to a report citing sources familiar with the matter.
Such movements are unusual in the world of startups. This is because founders generally do not make profits before investors.
The October 2021 share sale comes during a six-month fundraising effort that has raised $2 billion from investors BlackRock, Sequoia Capital and Temasek and brought FTX’s valuation to $25 billion.
As for FTX stocks, Binance received $2.1 billion in the form of BUSD and FTT tokens, and those FTT tokens appear to have become a market catalyst that something is wrong with FTX after Binance CEO Changpeng. Zhao announceIn early November, the company said it would sell its tokens and caused FTX to shut down.
refer : LINK
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