Founder Sam Bankman-Fried is alleged to have diverted $300 million out of $420 million in investor money

Founder Sam Bankman-Fried is alleged to have diverted $300 million out of $420 million in investor money
Sam Bankman Fried

The founder of crypto exchange FTX is facing more and more criticism.

(Photo: The Washington Post/Getty Images)

New York Sam Bankman-Fried, the founder of FTX, is said to have used nearly three quarters of the money raised by investors in the 2021 funding round for his own purposes. Wall Street Journal reports.

FTX raised $420 million last October from several big-name investors. The cryptocurrency exchange, which is now the third largest in the world, said at the time that it wanted to use the funds to fuel the growth of its company. The investment should also improve the platform’s user-friendliness and cooperation with regulators.

According to the newspaper report, however, it did not mention that the $300 million was not given to FTX, but to founder and CEO Bankman-Fried. He sold part of his stake in the company. The “Wall Street Journal” quotes from relevant financial documents and insiders.

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