Media startup Semafor Repurchasing Sam Bankman-Fried’s $10 Million Stake
Media firm Semafor revealed plans to buy back the $10 million stake attributed to the FTX chief executive Sam Bankman-Fried. The announcement comes after the startup’s December 2 disclosure of Bankman-Fried’s stake that it was previously noncommittal to refund.
Repurchasing Bankman-Fried’s Interest
Semafor revealed in a January 18 statement that it would start the purchase back process on the $10m stake. The report attributed Bankman-Fried’s investment made during the $25 million seed capital to fund its news site that started in October 2022.
The report published in the New York Times revealed plans for Semafor to raise fresh capital from other sources to restitute the refund. The firm joins other news platforms and political groups promising to refund the money received from the embattled crypto exchange and beleaguered executives.
Raising Fresh Capital to Repurchase Sam’s Stake
While Semafor disclosed on December 2 the existence of Bankman-Fried’s investment but failed to reassure refunding the money. Nevertheless, the media startup confessed to consulting its attorneys and initiating talks with government agencies to make an informed decision on the funds.
The latest report on Wednesday, January 18, indicated the firm’s co-founder Justin Smith’s resolution to repurchase Sam’s interest. He added that the $10 million stake would be remitted in a separate trust account, awaiting the legal authorities’ guidance on where to refund the money.
Meanwhile, the revelation of Bankman-Fried’s interest in the startup affirms that the former chief executive at FTX would frequently contribute to media entities and political groups. His critics allege that his contributions constituted the gag or tools to influence the narrative about the FTX empire.
Secret Loans to The Block
A significant number of the recipients of the contributions have distanced themselves from the collapsed FTX empire. In particular, it prompted The Block crypto news platform chief executive to resign on December 9 following the discovery of secretly advanced loans from Alameda Research. Michael McCaffrey’s resignation arose from the report published by the media website Axios that he failed to disclose receiving three multi-dollar loans from the brokerage arm of FTX Group.
Decrying the secrecy, the current leadership at The Block regretted the absence of judgment by the former chief executive. Current chief executive Bobby Moran ruled out the financial deal influenced The Block’s editorial decisions.
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