Semafor Weighs Options To Buy Out Disgraced FTX Founder's Interest: Report

Semafor Weighs Options To Buy Out Disgraced FTX Founder's Interest: Report
  • Semafor is in the early stages of working out how to raise the money to repurchase Sam Bankman-Fried's position in the media startup, founded by former Bloomberg and New York Times Company NYT executives.
  • FTX (FTT/USD) cryptocurrency exchange founder Bankman-Fried contributed more than a third of the $25 million in initial funding for the venture launched by Justin Smith, the former Bloomberg Media chief executive, and Ben Smith, the ex-New York Times columnist.
  • Citing Smith, Financial Times reported that the structure of Semafor's pre-seed funding round gave Bankman-Fried "no actual shares." If Bankman-Fried's interest was converted to equity, he would have been entitled to a single-digit minority stake, despite being the largest outside investor.
  • Also Read: Once Reluctant, Scaramucci Alleges FTX's Sam Bankman-Fried 'Committed Fraud'
  • The report cited Justin Smith saying, "We are planning to repurchase Sam Bankman-Fried's interest in Semafor and to place the money into a separate account until the relevant legal authorities provide guidance as to where the money should be returned."
  • It is unclear how Semafor's legal agreements define Bankman-Fried's "interest."
  • P{hoto Via Wikimedia Commons

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