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


Media startup Semafor said on Jan. 18 that it will attempt to buy back former FTX CEO Sam Bankman-Fried’s $10 million stake in the company, according to a Jan. 18 report from the New York Times. The report stated that Semafor will seek to raise money from other sources to make up what it is giving back.

The $10 million was part of a $25 million seed funding round that allowed Semafor to get started with its news site, which launched in October.

Semafor is the latest in a string of news sites and political groups that have said they will return money given to them by the failed crypto exchange and its executives.

Semafor had disclosed the investment on Dec. 2, but at the time did not commit to returning the money, saying only that it would consult with attorneys and government agencies before deciding what to do next. This new report quoted the company’s co-founder, Justin Smith, as stating that “we are planning to repurchase Sam Bankman-Fried’s interest in Semafor, and to place the money into a separate account until the relevant legal authorities provide guidance as to where the money should be returned.”

Bankman-Fried was a frequent contributor to politicians and media groups, and critics have accused him of attempting to use these contributions to influence the narrative about his companies. Some companies have sought to distance themselves from him and his firms since the crypto exchange he founded went bankrupt. On Dec. 9, the CEO of crypto news site The Block resigned after it was discovered that he had obtained loans from Alameda Research, a subsidiary of SBF’s FTX Group, that he had not disclosed publicly.

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

The Block’s new CEO has called this lack of disclosure “a serious lack of judgment” on the part of the previous CEO, while strongly denying that the deal affected the company’s editorial decisions.

FTX filed for bankruptcy in November after suffering a liquidity crisis that prevented it from being able to honor withdrawals. SBF himself has been arrested on fraud charges and pleaded not guilty on Jan. 3.

#Media #startup #buy #million #SBF #stake #Report


Related Posts

Sequoia Capital, Paradigm among VCs facing ‘tricky’ FTX investor lawsuit

[ad_1] Users of bankrupt crypto exchange FTX have reportedly taken aim at financiers who promoted the platform suggesting their efforts added an “air of legitimacy” to the…

IND vs AUS: Shreyas Iyer declared fit for the second Test; Jasprit Bumrah to miss the ODIs as well

[ad_1] India’s star batter Shreyas Iyer who did not play the first Test between India and Australia due to a lower back injury, has been declared fit…

Sen. Warren vows reintroduction of AML bill that extends to DAOs and DeFi

[ad_1] A bi-partisan anti-money laundering (AML) bill that covers “decentralized entities” such as decentralized finance (DeFi) protocols and DAOs will soon be reintroduced to Congress, according to…

IND vs AUS: “I Had A Tough Time, Dale Steyn And Morne Morkel Were At Their Peak”

[ad_1] Indian batter Cheteshwar Pujara will play his 100th Test match against Australia at the Arun Jaitley Stadium in Delhi starting Friday, February 17. And ahead of…

Dogecoin, Shiba Inu Soar As Elon Musk Announces Twitter CEO

[ad_1] Elon Musk, who is still searching for a new Twitter CEO, jokingly introduced a dog as Twitter’s new CEO, sending the prices of Dogecoin, Shiba Inu…

Chetan Sharma’s sting operation: Here are the startling revelations made by Team India’s chief selector

[ad_1] Former India cricketer and current chief of the BCCI selection committee Chetan Sharma has made some shocking revelations in a massive sting operation conducted by Zee…

Leave a Reply

Your email address will not be published. Required fields are marked *