The deal to buy the Blockfolio service cost FTX $84 million, which was one of the largest acquisitions in the cryptocurrency market in 2020. It turned out that the funds were paid in the native tokens of the crypto exchange.
FTX management did not release details of the deal, although sources said the funds would be paid out in shares, cash and cryptocurrencies. However, financial documents fell into the hands of Bloomberg journalists, which say that 94% of the funds were paid in FTT tokens – FTX’s native tokens.
At the time of the takeover, the deal amounted to about $150 million. It seems to be about the full value of Blockfolio – in 2020, Sam Bankman-Fried received 52% of the service, and planned to buy the rest of the share within two years.
Note that in its lawsuit, the US Securities and Exchange Commission (SEC) named
FTT token is a security. Thus, an unregistered sale of securities may appear on the list of charges against FTX management and the founder of the exchange. According to the regulator, FTX used the proceeds from the sale of FTT to fund the business.
Earlier, Alameda Research CEO Caroline Ellison and FTX co-founder Gary Wang pleaded guilty to fraud. There is a version that they made a deal with the investigation
Source: Bits
I am an experienced journalist, writer, and editor with a passion for finance and business news. I have been working in the journalism field for over 6 years, covering a variety of topics from finance to technology. As an author at World Stock Market, I specialize in finance business-related topics.
