Media Startup Semafor Wants to Buyback Bankman-Fried's $10M Share
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19 January

Semafor, a news startup founded by BuzzFeed News and The New York Times journalists, is seeking new investments to buy back a $10 million investment made by former FTX head, Sam Bankman-Fried, The New York Times (NYT) reports, citing Justin Smith, Semafor's Co-Founder.

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The media startup wants to place Bankman-Fried's investment into a "separate account until the relevant legal authorities provide guidance as to where the money should be returned."

The disgraced crypto entrepreneur is known for his love for spending clients' funds for his personal purposes as his hedge fund Alameda Research apparently spent billions of customers money on failed investment deals. However, it is unclear whether the money used for Semafor's funding belonged to clients of FTX.

FTX's Sam Bankman-Fried Arrested, SEC Charges with Defrauding Investors

Although Semafor has already conducted several funding negotiations, the talks haven't resulted in any agreements yet, NYT reports, citing sources with knowledge of the matter.

FTX filed for Chapter 11 bankruptcy protection in the US in early November after it had faced a liquidity crisis. The Bahamas-based trading platform allegedly owes nearly $3.1 billion to top 50 creditors.

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