In a recent revelation, it was discovered that two of the largest companies in the world, Google and BlackRock, were about to embark on the journey of FTX, one of the largest cryptocurrency exchanges, while it was on the verge of collapse.
At the heart of the case are documents presented in a trial related to FTX and its former leader, Sam Bankman-Fried. Can Sun, the exchange’s former general counsel, testified and brought to light a spreadsheet that mapped out FTX’s fundraising. This spreadsheet, now revealed, showed that there was an active search for investors in a round that was never completed.
As we dive into the details of this document, we come across familiar names such as BlackRock, Google and Apollo. In his testimony, Sun mentioned that Apollo was approached specifically to help resolve FTX’s liquidity issues. This was a clear sign of the financial challenges the exchange was facing.
Interestingly, both BlackRock and Google were in the process of due diligence on the exchange before its abrupt crash on November 11th. It’s no secret that BlackRock had made a previous investment in FTX, while Google had investment relationships with other Bankman-Fried initiatives, but not with FTX directly.
Sam Bankman-Fried, once considered a prodigy in the world of cryptocurrencies, is currently at the center of several accusations. He is accused of misusing client funds, whether for loans, high-risk investments or property acquisition. These accusations gained even more prominence with the SEC’s action against FTX.
Finally, the spreadsheet presented at the trial also reveals an equal probability that giants like Google, BlackRock and even the Qatar Investment Authority could become investors. Other names, such as Temasek and Standard Crypto, appear as “high probability” investment bets.
The complexity of this case highlights the intricate web of the crypto market and how large corporations are looking at it with caution and interest. While investigations continue, the community awaits the next developments in this saga.
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