Based on the report, accused FTX founder Sam Bankman-Fried used customer money from sister company Alameda Research to take a position $200 million in two separate firms.
One of Bankman-Fried’s investments was for the Dave banking app, which revealed a $100 million windfall profit last March that allegedly got here from FTX Ventures, reported CNBC on Wednesday.
One other $100 million investment supported Mysten Labs, a Web3 company focused on digital infrastructure, in accordance with the business network.
The $100 million investment pair was named in a U.S. Securities and Exchange Commission grievance alleging allegations against Bankman-Fried, who’s accused of defrauding FTX clients out of billions of dollars.
The outlet said the 2 deals price $100 million were the one ones of this magnitude disclosed by FTX. The feds accuse Bankman-Fried and other former FTX executives of using customer funds as their very own personal piggy bank and stealing money to cover dangerous bets placed by Alameda, his cryptocurrency hedge fund, to pay for his or her lavish lifestyles.
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In its grievance, the SEC referred to those two investments to support its claim that Bankman-Fried had concealed the reality about FTX’s “precarious financial condition” and “continued to supply investors with false and misleading positive information in regards to the company.”
At one meeting with investors in FTX’s U.S. operations, the feds said that FTX incorrectly stated that “certain investments didn’t include assets of FTX or its customers.”
“Contrary to this statement, two $100 million investments by FTX affiliated investment vehicle, FTX Ventures Ltd., were funded by funds from FTX clients that were diverted to Alameda,” the grievance reads.
![SBF](https://nypost.com/wp-content/uploads/sites/2/2022/12/sam-bankman-fried-5.jpg?w=1024)
Mysten Labs and Dave haven’t been charged with any wrongdoing in reference to the FTX case. Bankman-Fried has eight federal charges carrying a maximum sentence of 115 years in prison.
Dave CEO Jason Wilk told CNBC that “it is important to say that we had no knowledge of FTX or Alameda using client assets to make investments.”
The $100 million got here in the shape of a short-term loan that FTX could later convert into shares in the corporate.
“Note issued to FTX to be repaid in March 2026.” the corporate said in a press release. “No conditions contained in the note create any ongoing obligation for Dave to repay before maturity.”
![SBF](https://nypost.com/wp-content/uploads/sites/2/2022/12/sam-bankman-fried-221228-36-1.jpg?w=1024)
Meanwhile, FTX acquired a stake in Mysten with an investment of $100 million. Mysten declined CNBC’s request for comment.
Earlier this month, current FTX CEO John Ray said the corporate would seek to get better Bankman-Fried investments and political donations that used customer funds as part of its ongoing bankruptcy efforts.
As reported by The Post, a gaggle of 4 FTX customers filed a category motion lawsuit against the corporate and its affiliates this week. The lawsuit asked the bankruptcy judge to declare FTX’s remaining assets to be the property of the defrauded customers, not the corporate.