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Finance

FTX's Blockfolio Stake Was Paid for Mostly in FTT: Bloomberg

Around 94% of the $84 million FTX paid for its majority stake in Blockfolio was in the FTT token it invented.

By Jamie Crawley
AccessTimeIconDec 22, 2022 at 9:23 a.m. UTC
Updated May 9, 2023 at 4:05 a.m. UTC
(Unsplash)
(Unsplash)

Bankrupt cryptocurrency exchange FTX used its own token, FTT, to fund the $84 million purchase of a majority stake in trading platform Blockfolio in 2020, Bloomberg reported Thursday.

Around 94% of the amount was in the token invented by FTX, according to the report, which cited financial documents. The deal gave FTX a 52% stake in the trading platform.

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    • FTT was at the center of the downfall of the company founded by Sam Bankman-Fried after CoinDesk revealed in early November that sister firm Alameda Research's balance sheet was full of the token, exposing the parlous state of its finances and the close ties between the two.

    Bankman-Fried's crypto empire rapidly disintegrated and the disgraced former CEO now faces criminal charges in the U.S., including wire fraud, conspiracy to commit money laundering and violating campaign finance laws.

    FTX did not immediately respond to CoinDesk's request for further comment.

    Read more: SEC Calls FTT Exchange Token a Security



    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Jamie Crawley
    Jamie Crawley

    Jamie Crawley is a CoinDesk news reporter based in London.

    Follow @JamieCrawleyCD on Twitter