FTX Funded Majority of Block Portfolio Acquisition Using FTT Token

The FTX crypto exchange network reportedly funded a large portion of block portfolio acquisitions using the FTT token. There have been allegations that the exchange is making fraudulent purchases and acquisitions.

FTX uses FTT token to buy block portfolio

The FTX saga continues weeks after the exchange’s demise, with new reports indicating improper financial dealings between the network and its subsidiaries. recently exposed reports Show that the exchange giant leveraged its native token, FTT, to pay for its deal with Blockfolio.

Bloomberg reported that FTX paid approximately $84 million to acquire a 52% stake in the automated trading network Blockfolio. 94% of the funds used to buy the Blockfolio network were the exchange’s self-invented tokens.

open statement indicates Sam Bankman-Fried Lured into making bizarre financial deals to attract many customers. Initially, when FTX bought a stake in the block portfolio, the sources explained that the exchange used a mix of equity, crypto and cash. There were no further details regarding the proportion of cash, crypto and equity used.

Further reports suggested that upon acquisition, Blockfolio was revalued at $160. In addition, the $84 million share buyout allowed FTX to complete the purchase following the acquisition. FTX was free to purchase the entire Blockfolio network within two years.

Recently exposed information indicates that Alameda Research’s controlling stake is mostly FTT tokens.

Fraudulent purchases in 2022

This year alone, the giant crypto network has been involved in significant purchases while trying to salvage the failed network. SBF’s empire bought top crypto platforms BlockFi, Voyager and others using FTT.

Bankman-Fried has recently been facing allegations of corruption and fraud. Crypto experts believe he misappropriated funds from the FTX crypto exchange to control luxury real estate and funded sister trading company Alameda Research.

Binance had announced plans to sell a large amount of FTT tokens. Reports suggest that SBF is going to happen soon extradited From the Bahamas to the US, the ancestral home of FTX, where he is being held.

FTX bankruptcy case continues

The FTX Exchange bankruptcy process and proceedings are still ongoing. Earlier this week, SBF workers pleaded guilty to charges related to the sudden collapse of the exchange. The two executives, FTX co-founder Gary Wang and Alameda Research CEO Caroline Ellison, have agreed to help financial authorities investigate FTX’s bankruptcy. Damian Williams, the US Attorney for the Southern District of New York, revealed the guilty pleas for the two chiefs, but has not yet announced their sentences.

As the case continues, more deals continue to be discovered, exposing the exchange’s rot.

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