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According to the Securities and Exchange Commission (SEC), several billions of dollars of users’ and investors’ funds disappeared from FTX. Approximately $200 million were used to fund two companies for which founder of FTX Sam Bankman-Fried is charged with “orchestrating a scheme to defraud equity investors.”
FTX had invested $100 million in Dave (earlier known as Dave.com) a computerized financial assistance tool. The help is actually an alternate way to deal with overdraft expenses, permitting clients to pay $1 per month for $100 in overdraft charge security.
The agency also revealed another FTX investment of about $100 million for Mysten Labs primarily focused on blockchain framework to enable decentralized applications involving crypto gaming.
Although FTX has invested in over dozens of companies, Dave and Mysten labs were the only two investments amounting $100 million each were revealed by Financial Times.
Jason Wilk, Chief Executive Officer of Dave noted in an interview with CNBC that FTX’s investment in the company will be repaid with interest by 2026.
“The note issued to FTX is due for repayment in March 2026.” the company quoted“No terms contained in the note trigger any current obligation by Dave to repay prior to the maturity date,”.
While responding to questions on FTX’s investments, Wilk highlighted that “it is important to state we had no knowledge of FTX or Alameda using customer assets to make investments.”
Moreover, the list of FTX’s investments is quite long and around 100 plus companies were invested in, but the invested amount yet remains unknown.
Before the collapse of the Bahamian crypto exchange, Amber was in the process of completing an extension to their Series B+ at a $3 Billion valuation in preparation for a potentially prolonged crypto winter. Post the bankruptcy filing, they paused after a partial closing and instead moved toward Series C.
No doubt, the aftereffects of the collapse of FTX has spread through the industry, exacerbating an already bleak market. Many crypto firms, including Bybit, have laid off staff amid the prolonged market downturn.
Bitgo CEO, Mike Belshe, talked on the Defi researcher Chris Blec’s Twitter Spaces on December 14th. Belshe said the trading firm tried to redeem its 3,000 Wrapped Bitcoin (wBTC) some time before FTX filed for bankruptcy.
The CEO explained that the digital asset trust company rejected Alameda Research’s request to reclaim access to wBTC. However, the representative from the firm could not pass the security verification process. The representative was unaware of the process of wBTC burning, Belshe added.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
