FTX Completed Blockfolio Deal in FTT Tokens: Report
- FTX reportedly paid 94% of the $84 million purchase of a major stake in Blockfolio in its native cryptocurrency, FTT.
- Bloomberg sources have stated that the exchange paid for the deal with a combination of digital currencies, cash, and stocks.
- Blockfolio partnered with FTX to provide its users with a retail trading experience, and later adopted the exchange’s name.
- FTT token is currently trading at about $0.94, roughly 99% down from its all-time high.
As the days go by, several dark secrets of the empire created by Sam Bankman-Fried, also known as SBF in the crypto community, are coming to light. In 2020, SBF’s exchange FTX completed the acquisition of a crypto platform called Blockfolio. Interestingly, the exchange reportedly paid 94% of the $84 million purchase of a major stake in Blockfolio in its native cryptocurrency, FTT, which has crashed almost 99% since the bankruptcy filing of the exchange.
A recent report by Bloomberg reveals that the bankrupt crypto exchange acquired a majority stake in the trading company Blockfolio in 2020 using almost exclusively the native token FTT. Without providing accurate details, Bloomberg sources have stated that the former crypto exchange giant paid for the deal with a combination of digital currencies, cash, and stocks. Earlier reports said that FTX spent $150 million on the acquisition.
Blockfolio, which was founded in 2014, quickly gained a reputation as one of the industry’s leading companies after registering around six million subscribers. It partnered with the infamous FTX to provide its users with a retail trading experience, and later adopted the exchange’s name.
For its part, FTX’s breakdown last month was mostly triggered by its native token when the world’s biggest crypto exchange, Binance, decided to sell out its entire FTT stock (23 million tokens valued at over $580 million at the time). This came in response to growing concerns over FTX and Alameda’s excessive exposure to the native token.
The action sparked a flood of user withdrawal requests, which FTX was unable to fulfill. A few days later, the exchange, which owed investors billions of dollars, declared bankruptcy.
The unfortunate occurrence severely impacted the price of FTT. When compared to its peak of $79.53 in September 2021, the token is currently trading at about $0.94, roughly 99% down from its all-time high.
The United States Securities and Exchange Commission (SEC) said that the bankrupt exchange had boosted brand development, company operations, and marketing with the proceeds from the sale of the asset. At the same time, it persuaded them that FTT was a lucrative “investment.”
Moreover, the agency added that FTX Token should be considered an “illiquid crypto asset security that was issued by FTX and provided to Alameda at no cost.”
It is crucial to note that SBF was arrested in the Bahamas and was also extradited to a hearding wherein he was finally granted a bail bond. However, a price tag of whopping $250 million was put on the bond which was paid by the crypto entrepreneur’s parents.
Furthermore, the CEO of Alameda Research, Caroline Ellison, and FTX co-founder Gary Wang, have pleaded guilty to criminal charges. The former has pleaded guilty to seven counts while latter has pleaded to four counts.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
