Evidence submitted in the criminal trial of Sam Bankman-Fried, former CEO of crypto exchange FTX, revealed that the exchange had engaged BlackRock and Google as potential investors in the fall of 2022. The spreadsheet showed that 15 potential investors should be “engage pronto”, indicating a “medium” chance of BlackRock and Google investing in the exchange. Additionally, Bankman-Fried is accused of defrauding customers and investors by using customer funds for various purposes. Several potential investors have “declined” to participate in the funding round, while Saudi Arabia Crown Prince Mohammed bin Salman considered buying equity in FTX, although it did not work out. Matt Huang, co-founder of Paradigm, spoke about a $278 million investment in FTX that the firm has “marked to zero”, as they would have wanted to know more before investing.
This news reveals the lengths that Bankman-Fried went to in order to secure investments for FTX, as he sought out big-name institutions such as BlackRock, Google, and Saudi Arabia Crown Prince Mohammed bin Salman. The evidence submitted has brought to light the fraudulent activity Bankman-Fried is accused of, which is likely to result in a conviction. This is not good news for Bankman-Fried, as he faces seven fraud and conspiracy charges.
You can read more about this topic here: Decrypt: Google and BlackRock Considered Investing in FTX as It Crumbled