FTX Acquired Blockfolio Mainly with Out of Thin Air Tokens: Report
Main page News, Token, FTX
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Dec. 22, 2022

Bankrupt crypto exchange FTX acquired trading platform Blockfolio for about $84 million with its own FTT tokens, Bloomberg has learned, citing financial statements.

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The report says that the now-bankrupt exchange acquired about 94% of Blockfolio with the out of thin air tokens back in 2020. Under the agreement, FTX got a 52% equity stake in Blockfolio as the company was valued at almost $160 million.

In 2021, Blockfolio was attacked by a group of hackers. The bad actors posted several offensive messages that had been distributed among the app's users. FTX Founder, Sam Bankman-Fried, said back then that all trading accounts in the app would receive a gift of $10 to make up for the inconvenience. It is unclear if the exchange used clients' funds to compensate its users.

FTX filed for Chapter 11 bankruptcy in the US in November after it had faced a liquidity crisis. According to court documents, approximately 130 firms affiliated with FTX are part of the proceedings in the proceedings.

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