### FTX ex-CEO Bankman-Fried gave himself $300 million of the $420 million raised from investors.

A lot can change in a year when you are talking about the beleaguered crypto exchange FTX. Back in October of last year, FTX raised $420 million from investors and said that the money would be plowed back into the business for growth and improved user experience. 

Now FTX is under intense scrutiny by the public as well as government agencies because of the way it handled its finances. A report by the Wall Street Journal (WSJ) now [reveals](https://www.wsj.com/articles/ftxs-sam-bankman-fried-cashed-out-300-million-during-funding-spree-11668799774) that $300 million of the money raised during that October funding spree went to FTX founder Sam Bankman-Fried.

WSJ notes that the amount raised referenced marijuana and oral sex memes with $420.69 million raised from 69 investors. In fact, one investor, Sequoia, called the fundraising a “meme round’ in an article it published. 

The WSJ report details that Bankman-Fried told investors that the money was to reimburse him for the money he spent to buy out Binance’s stake in FTX a few months earlier. 

Typically, this practice is frowned upon because it allows founders to make a profit before investors. However, it is not unheard of. Sales would need to be approved by a board of directors. But in FTX’s case, the board only had three directors, which included Bankman-Fried himself, as of early this year.

WSJ was not able to uncover what Bankman-Fried did with the $300 million, but in FTX’s audited financial statements, it said that the money was retained by the company for “operational expediency” on behalf of a “related party.”

Current FTX CEO John Ray, who is tasked with overseeing FTX’s bankruptcy, indicated that Bankman-Fried’s decisions with the company would be under scrutiny. According to him, FTX would hold a “comprehensive, transparent and deliberate investigation into claims against Mr. Samuel Bankman-Fried” as well as the other co-founders during the bankruptcy proceedings. 

Ironically, in a press release issued at the time of the fundraising, Bankman-Fried said FTX was “able to partner with investors that prioritize positioning FTX as the world’s most transparent and compliant cryptocurrency exchange.”

FTX ex-CEO Bankman-Fried gave himself $300 million of the $420 million raised from investors.

Sat Nov 19 2022

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Sat Nov 19 2022 FTX’s Sam Bankman-Fried gave himself $300 million in Oct. funding spree

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Sat Nov 19 2022

FTX’s Sam Bankman-Fried gave himself $300 million in Oct. funding spree