Bloomberg: FTX Funds Blockfolio Purchase with FTT Token

The deal to buy the Blockfolio service cost FTX $84 million, which was one of the largest acquisitions in the cryptocurrency market in 2020. It turned out that the funds were paid in the native tokens of the crypto exchange. FTX management did not release details of the deal, although sources said the funds would be paid out in shares, cash and cryptocurrencies.. However, financial documents fell into the hands of Bloomberg journalists, where it is said that 94% of the funds were paid in FTT tokens – FTX's own tokens. At the time of the takeover, the deal was valued at about $150 million.. This seems to be about the full cost of Blockfolio – in 2020, Sam Bankman-Fried received 52% of the service, and planned to buy the rest of the share within two years. Note that in its lawsuit, the US Securities and Exchange Commission (SEC) called the FTT token a security. Thus, an unregistered sale of securities may appear on the list of charges against FTX management and the founder of the exchange.. According to the regulator, FTX used the proceeds from the sale of FTT to fund the business. Earlier, Alameda Research CEO Caroline Ellison and FTX co-founder Gary Wang pleaded guilty to fraud.. There is a version that they made a deal with the investigation