Media startup says it will buy back $10 million SBF stake: Report

Media start-up Semafor stated on Jan. 18 that it will try and buy back former FTX CEO Sam Bankman-Fried’s $10 million share of the corporate, in response to a January 18 report from the New York Times. The report said that Semafor will search to raise cash from different sources to make up for what it is giving back.

The $10 million was a part of a $25 million seed funding spherical that allowed Semafor to get began with its information website, which launched in October, 2022.

Semafor is the newest in a string of stories websites and political teams which have stated they will return money given to them by the failed crypto alternate and its executives.

It had disclosed the funding on December 2, however on the time it had not dedicated to returning the cash, saying solely that it would seek the advice of with attorneys and authorities companies earlier than deciding what to do subsequent. This new report cited the corporate’s co-founder Justin Smith, stating that “We are planning to repurchase Sam Bankman-Fried’s curiosity in Semafor, and to put the cash right into a separate account till the related authorized authorities present steerage as to the place the cash must be returned.”

Sam Bankman-Fried was a frequent contributor to politicians and media teams, and critics have accused him of trying to make use of these contributions to affect the narrative about his corporations. Some corporations have sought to distance themselves from him and his corporations for the reason that crypto alternate he based went bankrupt. On December 9, the CEO of crypto information website The Block resigned after it was found that he had obtained loans from Alameda Research, a subsidiary of SBF’s FTX Group, which he had not disclosed publicly.

Related: FTX fallout: SBF trial could set precedent for the crypto industry

The Block’s new CEO has referred to as this lack of disclosure “a critical lack of judgment” on the a part of the earlier CEO and has strongly denied that the monetary deal had any impact on the corporate’s editorial selections.

FTX filed for chapter in November, 2022 after struggling a liquidity disaster that prevented it from having the ability to honor withdrawals. SBF himself has been arrested on fraud costs, and pled not guilty on January 3.

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About the Author: Daniel