FTX Ventures, the venture arm of crypto exchange FTX, used $200 million of customer funds to participate in funding rounds for two projects, Mysten Labs and Dave, CNBC has reported by referencing documents from the US Securities and Exchange Commission (SEC).
FTX Ventures invested $100 million in Dave Digital Bank in March, whereas in September, the company led the Series B investment round of startup Mysten Labs, in which it also invested $100 million.
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The Financial Times has previously reported on other investments by the exchange's venture division. According to CNBC, so far the SEC has been able to find evidence of the use of customer funds only in the two previous transactions.
Dave's CEO Jason Wilk has said his company aims to "repay the FTX investment with interest by 2026." He has explained the financing was provided through a convertible promissory note that could convert into shares.