Semafor want to buy out ex-FTX CEO's stake

After the story with the American cryptocurrency exchange FTX happened, many startups began to fence themselves off from the influence of Sam Bankman-Fried, and some of them began to buy out the American's share. The news startup Semafor has joined the list of such companies.

Representatives of the publication said that they intend to buy out a share of SBF in the amount of $10,000,000. The latter invested in allowing the news startup to flourish, but now the company has expressed a desire to become independent and not be associated with the Sam Bankman-Freed name in the media space.

Semafor needs to find new investors to make their idea come true, as they don't have enough money to cover the stake of the former FTX CEO. This was reported by the New York Times, citing Justin Smith, one of the founders of Semafor.

According to Smith, the news startup wants to raise funds to freeze Sam Bankman-Freed's stake until US authorities decide what to do with the money invested in Semafor. So far, negotiations with potential investors have failed to lead to any agreements.

The situation with the share buyback is complicated by the fact that SBF has invested the most funds in the framework of the investment round. Back then, Semafor was able to raise about $25,000,000, $10,000,000 of which came from Bankman-Fried .

The news startup could still freeze SBF's stake, according to the New York Times, but the company could face a number of problems if it does. If the top management of Semafor decides to do this, then the company will have to say goodbye to its ambitions related to the expansion of the staff and the payback of the project for some time.

Journalists have found that the influence of Sam Bankman-Fried in the news space goes far beyond investing in one company. According to information received by the media, the SBF was able to bribe the ex-head of The Block cryptocurrency publication. The payment for their silence cost the American $40,000,000. Notably, this payment was made through hedge fund Alameda Research, which was involved in the village of FTX's bankruptcy. Considering that SBF used the money of FTX cryptocurrency exchange clients to pay off debts at Alameda Research, it is possible that the agreement with the former director of The Block was also reached with the help of client funds.

In this situation, it is also noteworthy that journalists noticed a craving for hedonism behind the top management of the bankrupt exchange. The management practically did not limit itself in spending client funds. The Insider publication shared information that FTX management spent a huge amount in excess of $40,000,000 in the 9 months before the firm went bankrupt. Sam Bankman-Fried and Co. spent most of their money on luxury hotels, high-end airline tickets, and luxury dining.

In addition, the FTX team took the liberty of buying all the properties it wanted to acquire. As a result, at least 19 objects in the Bahamas were at their disposal. All properties were purchased in the last 2 years. 15 properties cost the company over $100,000,000. FTX's largest single purchase was a $30,000,000 penthouse in Albany. It is worth noting that all properties were acquired by FTX Property Holdings.