FTX funded 94% of Blockfolio takeover with its FTT token: Bloomberg
Quick Take
- When FTX acquired Blockfolio in 2020 for $84 million, 94% of the total was paid in FTT, according to a Bloomberg report.
- Yesterday, the U.S. Securities and Exchange Commission claimed FTT is a security, specifically noting that FTX used proceeds from the token sale to fund its business efforts.
When now-defunct crypto exchange FTX acquired the portfolio tracking platform Blockfolio in 2020, it used its own exchange token, FTT, to fund the takeover, according to Bloomberg.
Roughly 94% of the $84 million deal was paid in FTT tokens — which FTX created — Bloomberg reported, citing financial statements it obtained.
The financial details of FTX's purchase of Blockfolio were previously unclear, though it was widely reported at the time that the exchange paid with a combination of cash, crypto and equity.
The news follows a late complaint yesterday from the U.S. Securities and Exchange Commission which claims FTT is a security. It specifically noted that FTX used proceeds from the FTT token sale to fund its business efforts.
FTX co-founder and former CEO Sam Bankman-Fried is currently in FBI custody following a barrage of charges. Additionally, FTX co-founder Gary Wang and Caroline Ellison, the former CEO of sister trading firm Alameda Research, have both pleaded guilty to criminal charges.
Disclaimer: The former CEO and majority shareholder of The Block has disclosed a series of loans from former FTX and Alameda founder Sam Bankman-Fried.
© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
