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thisCrowd - Audio Read
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In a high-stakes financial thriller that had the crypto world on edge, the dynamic duo of Google and BlackRock narrowly missed investing in FTX, the once-thriving crypto exchange. This near-miss investment saga, filled with suspense and intrigue, has been revealed through a spreadsheet submitted as evidence in Sam Bankman-Fried’s ongoing trial.
The C1 funding round, a last-ditch effort to save FTX from collapse, kicked off in the late summer and fall of 2022. Little did anyone know that this round would become a symbol of FTX’s fight for survival.
As the former general counsel of FTX, Can Sun, took the stand, a spreadsheet came into play, offering a rare glimpse into the exchange’s frantic pursuit of funding. This document, a treasure trove of revelations, showcased the roster of potential investors and the dire straits FTX found itself in.
The list of potential investors featured heavyweights like BlackRock, Google, and Apollo, each holding the promise of rescuing FTX from its liquidity crisis. Apollo, in particular, was sought after to address the mounting customer withdrawal issues.
As the trial unfolded, it was revealed that Google and BlackRock had a medium chance of participating in the funding round, although both were conducting due diligence to understand the full extent of FTX’s challenges.
The trial proceedings revealed a web of charges against Sam Bankman-Fried, including allegations of misusing customer funds for loans, political donations, venture investments, and real estate purchases. He was also accused of misleading FTX’s investors, a matter that led to an SEC lawsuit.
The spreadsheet indicated an equal likelihood that Google and BlackRock, as well as venture capital firm NEA and Qatar Investment Authority, would step into the funding round. Temasek and Standard Crypto were categorized as high probability investors, further adding complexity to the financial landscape.
Ultimately, BlackRock did invest $24 million in FTX, while Google narrowly missed the opportunity, although it maintained close ties with the crypto world through its connection with Sam Bankman-Fried.
The FTX-Google-BlackRock saga provides a riveting narrative of high-stakes finance, close calls, and the intricate world of modern investments. It serves as a reminder that even industry giants can find themselves on the precipice of financial turmoil.
