Founder Sam Bankman-Fred is said to have funneled $300 million of the $420 million in investors’ money

Founder Sam Bankman-Fred is said to have funneled $300 million of the $420 million in investors' money
Sam Bankman fried

The founder of the cryptocurrency exchange FTX is receiving mounting criticism.

(Photo: The Washington Post/Getty Images)

New York FTX founder Sam Bankman-Fred reportedly used nearly three-quarters of the money pledged by investors in a funding round in 2021 for his own purposes. Wall Street Journal reports.

FTX raised $420 million from a number of large investors in October last year. The cryptocurrency exchange, which is now the third largest in the world, said at the time that it wanted to use the money to boost the growth of its own company. The investment should also improve the platform’s ease of use and cooperation with regulators.

However, according to the newspaper’s report, it was stated that $300 million did not go to FTX, but to its founder and CEO Bankman-Fried. He sold part of his stake in the company. “The Wall Street Journal” quoted from the relevant financial documents and inner circles.

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