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: Beginning in 2021, Michael McCaffrey, the former CEO and majority owner of The Block, took a series of loans from founder and former FTX and Alameda CEO Sam Bankman-Fried. McCaffrey resigned from the company in December 2022 after failing to disclose those transactions.

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