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FTX Exchange Tops $32B Valuation with a $400M Series-C Venture Funding

FTX Derivatives Exchange has concluded its Series C funding round where it raised the sum of $400 million to increase its valuation to $32 billion.

Investors who participated in the funding round as announced by the trading platform include but are not limited to Temasek, Paradigm, Ontario Teachers’ Pension Plan Board, NEA, IVP, SoftBank Vision Fund 2, Lightspeed Venture Partners, Steadview Capital, Tiger Global, and Insight Partners.

FTX revealed that the majority of the investors it welcomed in this funding round also backed FTX.US, it’s subsidiary in the United States which just completed its $400 million fundraising to hit an $8 billion valuation. According to the exchange, the new fund for the global outfit will now be deployed into developing additional products aimed at broadening the platform’s reach.

“This round will support our continued mission of delivering innovative products and services to the marketplace as well as expanding our global reach with additional licenses around the world,” said Sam Bankman-Fried, Chief Executive Officer of FTX. “With the ongoing support from our dedicated investors and userbase, FTX will look to continue interacting with regulators to facilitate access to digital assets in a safe and compliant manner. We look forward to working alongside our investors to achieve our mission and continue our tremendous growth throughout 2022 and beyond.”

In the past 6 months, FTX has raised a total of $1.8 billion from venture capital firms, cementing its stand as one of the most liquid trading platforms around. Back in October when the firm completed its Series B-1 funding round, it was valued at $25 billion, and the current valuation shows the firm is growing at a very progressive rate.

FTX is ranked the third-largest trading platform by volume, a feat it achieved by growing its user base by more than 60% since the last funding round. The exchange recently launched FTX Ventures, a $2 billion venture fund created to advance global blockchain, cryptocurrency, and Web3 adoption.

FTX Exchange Acquires Japan-based Liquid Exchange

In a bid to expand its global footprint, FTX Derivatives Exchange has acquired Japanese digital assets brokerage firm, Liquid Group, and its existing subsidiaries Quinone Corporation and Quinone Pte in Singapore.

While the financial terms of the deal were not revealed, the announcement detailed plans to wrap up the acquisition by March this year, although this is notably subject to the satisfaction of all customary closing conditions. Despite the acquisition, FTX Exchange will permit Quinone to operate its existing business products bordering on derivatives offerings.

The trading platform was established back in 2014 and was issued by Type 1 Financial Instruments Business registration by the Japanese FSA as reported by Blockchain.News in October 2021. With the acquisition, FTX will move its Japanese customers to the Quinone platform. They will also be able to access FTX’s product offerings on the platform as both outfits’ services will be merged.

“Following FTX’s acquisition of Liquid, Quoine will gradually integrate FTX’s products and services into its own offering, and FTX’s existing Japanese customers will be migrated to Quoine’s platform,” the issued statement reads, adding that both trading platforms “expect to work together to provide products and liquidity to retail and institutional investors in the Japanese and global markets.”

Existing FTX users in Japan will be sent a notification in the form of an email with further details on the transition and transfer described above.

FTX Derivatives Exchange is a prominent player in the Merger and Acquisition (M&A) scene. The company acquired LedgerX, a U.S-based Commodity Futures Trading Commission (CFTC) licensed derivatives provider. FTX’s positioning in the M&A scene is bolstered with the continuous accumulation of venture capital funding.

As reported by Blockchain.News, FTX Exchange recently inked a $400 million funding to increase its valuation to $32 billion. This massive liquidity affords the trading platform the opportunity to extend its tentacle and take up ownership of smaller firms with established product offerings around the world.

Image source: shutterstock

Goldman Sachs Lobbying FTX Exchange for an IPO Move

American investment banking giant Goldman Sachs is notably lobbying FTX Derivatives exchange if the crypto trading platform decides to go public through Initial Public Offering (IPO) shortly.

According to a report by the Financial Times, Goldman Sachs’ Chief Executive Officer (CEO), David Solomon, met with FTX Founder Sam Bankman-Fried back in March as both discussed many areas in which they can collaborate.

Primarily, Goldman Sachs was reportedly bolstering its role as an advisor to FTX related to the exchange’s dealings with the Commodity Futures Trading Commission (CFTC). The American banking giant will also like to be the broker should FTX decide to go public, assuming a similar role when Coinbase Global Inc went public on the Nasdaq Exchange last year.

Besides these salient aspects, the duo also discussed private fundraising options, collaboration on the market making in crypto trades, and Goldman offering traditional banking services to FTX, according to the sources that spoke to the Financial Times.

FTX Exchange is a trading platform that is making waves in many aspects. Following the enormous funds raised by the crypto unicorn in the past couple of years, it hit a $32 billion valuation in January. The exchange’s positive growth momentum has attracted a number of traditional legacy investors, including the Ontario Teachers Pension Plan and Softbank, amongst others.

The massive valuation of FTX has made the next logical milestone pegged at an IPO, and should Coinbase’s success story be trailed, the Bankman-Fried platform could also hit it off with investors in the public market.

Besides its global operations, FTX has a dedicated and regulated subsidiary in the United States dubbed FTX.US, a startup that has grown its reputation for inking partnerships with sports teams and its strategic acquisitions, the latest of which is LedgerX, a CFTC-regulated derivatives service provider.

Sam Bankman-Fried Donates $16m to Democratic Super PACs in April: Bloomberg

FTX Derivatives Exchange’s Chief Executive Officer Sam Bankman-Fried has doubled down in his donations to Super Political Action Committees (PACs), with a total donation of $16 million in April.

As reported by Bloomberg, the donations were made in two tranches of $10 million and $6 million respectively.

The $10 million donations were given to Protect Our Future, a Super PAC that has a commitment to super candidates that have promises to help prevent the next pandemic.

As the mid-term elections are approaching, the PAC has spent as much as $19 million to back Democratic candidates, including Carrick Flynn. Flynn ran for an open seat in Oregon’s 6th Congressional District but lost the primaries to Andrea Salinas, a state lawmaker who, according to Bloomberg could be Oregon’s first Latino woman elected to Congress should she win the seat in November.

The donated $6 million were given to a PAC connected to House Speaker, Nancy Pelosi dubbed The House Majority PAC. The donated funds have earned Bankman-Fried the highest donor to the PAC in April. This election season, Sam Bankman-Fried who has seen his net worth slashed by almost half to $11.3 billion in the wake of the current crypto market onslaught has donated a total of $31.5 million thus far.

Back in 2020, the FTX boss was the VIP amongst the biggest donors to President Joe Biden’s campaign and earned him his reputation as one of the top crypto investors with active engagement in American politics.

The mid-term elections, as with other mid-terms are a very pivotal one in the United States, and this time around, the Democrats will be looking to either maintain or extend the majority leader in the House. With a crypto representation joining hands to fund candidates, it is indicative of the role of crypto in seeking the common societal good.

FTX Looking to Launch its Own Stablecoin – Sam Bankman-Fried

Cryptocurrency trading behemoth, FTX Derivative Exchange may soon launch its own stablecoin as confirmed by its founder and CEO, Sam Bankman-Fried.

Speaking in an interview with Web3 news media, The Big Whale, Bankman-Fried discussed a number of the industry’s perceptions with respect to the exchange’s position atop the ongoing crypto winter.

As against the popular belief that FTX is the biggest winner in the industry based on its success in snapping up Voyager Digital and BlockFi, both crypto lenders that got riled up as prices of assets tumbled, Bankman-Fried reiterated that its role, irrespective of the perception is to help maintain industry balance which will, in turn, benefit everyone.

Acknowledging that this current crypto winter is the “first real Bear Market we’ve been through,” the FTX boss acknowledged that the market downtime is not affecting its business as such as it is always innovating.

“One of the main characteristics of crypto platforms is that our operation is not impacted by the market downturn any more than that,” he said, “Every day we continue to grow the business, create services and new tools for customers. So, yes, the markets are less dynamic, things are a little more tense, but in the end, it doesn’t take us off course.”

While the plan to launch the stablecoin did not come with many details other than it will be done in partnership with other key players in the space, the move did not come as a surprise seeing Binance exchange, the trading platform FTX is still trying to beat in terms of daily trading volume has launched its own stablecoin.

The collapse of TerraUSD (UST), the token linked to the Terra ecosystem has sent a cold shiver down the Web3 ecosystem with intensive scrutiny and oversight from regulators. With FTX’s stance, the exchange may be well-positioned to launch a stablecoin that will align with the regulator’s guidelines.

Federal Judge Refuses to Consolidate Class-Action Lawsuits Against FTX Exchange

As a result of the decision taken by United States District Judge Jacqueline Scott Corley to refuse the motion to consolidate the cases, FTX and its defendants will have the right to react to the accusations that have been made by the plaintiffs. This right will come as a direct result of the fact that the motion to consolidate the cases was denied. A number of individuals have been named as defendants in the case because it is believed that they stole money or property. In addition to Bankman-Fried and other FTX executives, these defendants also include independent auditors and exchange promoters. Before taking any action, the judge’s decision underscores the importance of following the correct method and ensuring that all parties have the chance to be heard.

Criminal charges are being brought against Bankman-Fried in addition to the class-action lawsuits that have already been filed against the company. The criminal accusations are tied to alleged violations of anti-money laundering and banking regulations. The lawsuits that have been brought against the firm are connected to these claims in some way. The attorneys representing Bankman-Fried have recently stated that it is possible that the criminal trial that was scheduled to take place in October will need to be postponed in order to accommodate the fact that they are awaiting significant evidence as well as additional accusations that were brought against their client in February.

The ongoing legal conflicts that FTX and Bankman-Fried are involved in serve as a reminder of how vital it is for the bitcoin industry to preserve an atmosphere that is open and responsible to its participants. It is essential for companies, in order to ensure that they conduct business in a manner that is both ethical and responsible, to make the protection of investors and compliance with laws a top priority as the sector continues to develop and advance. This will ensure that businesses conduct themselves in a manner that is both ethical and responsible.

FTX Future Fund Shut Down Following Exchange's Collapse

In November 2022, FTX exchange and its subsidiaries collapsed, leading to the shutdown of its philanthropic arm, FTX Future Fund. The fund was sponsored by former CEO Sam Bankman-Fried and had pledged $1 billion in donations towards research academics across prestigious universities. The grants were focused on research projects for the safe development of artificial intelligence, reducing catastrophic bio-risk, improving institutions, economic growth, great power relations, and effective altruism.

However, following FTX’s bankruptcy filing, the team behind the FTX Future Fund resigned, leaving many scholars and researchers who were early recipients of the grant in limbo over the payment of further grants for their programs. According to a Reuters report, many students studying on the FTX grant were forced to drop out of their courses due to the fear of repayment.

Twenty academics from prestigious colleges, including Cornell, Princeton, and Brown universities in the United States, as well as Cambridge in Britain, received grants from the FTX philanthropy arm, totaling more than $100,000 each. Based on these announcements, further calculations suggest university-affiliated research initiatives received a total of more than $13 million.

Many of these academics who received the first grant have now found themselves in a tricky situation, with the next due date for fee submission already passed. As a result, many students were forced to drop out of the program after the first year. Others who did receive a full grant have found themselves in an ethical battle over whether to use the grant or return the funds, which might be part of stolen customers’ funds, as per the lawsuit against the crypto exchange and its founders.

While FTX asked recipients of payments from the debtors in the FTX bankruptcy filing to return their funds in an announcement, it didn’t mention the FTX Future Fund. However, a U.S.-based lawyer suggested that it will depend on the FTX trustees and their willingness to claw back small amounts, including philanthropic ones.

The collapse of FTX exchange has caused significant harm to its philanthropic arm, FTX Future Fund, and its beneficiaries. The shutdown of the fund has left many scholars and researchers stranded without the support they were promised, forcing some to drop out of their programs. The ethical implications of using or returning the funds have also caused concern among grant recipients, with some unsure of what to do next. It remains to be seen whether the FTX trustees will take action to claw back the philanthropic funds or whether the affected researchers and scholars will receive the support they were promised.

Binance CEO Denies Bloomberg's Net Worth Report

Changpeng “CZ” Zhao, the CEO of Binance, one of the world’s biggest cryptocurrency exchanges, has refuted the net worth stated by Bloomberg in its financial rich list. Bloomberg included Zhao on its list of the world’s richest people in finance. With an estimated wealth of $28.2 billion, CZ is positioned among the top three financial billionaires in the world, as shown by the ranking. On the other hand, CZ said on Twitter on April 27 that the statistics are all incorrect and that he does not have anywhere near as much money as what is supposed to have been the case for him, notwithstanding what was previously stated.

CZ began his tweet with the number 4, meaning that his worth should fall somewhere between Dan Gilbert’s $19.4 billion and Uday Kotak’s $13 billion. Uday Kotak is the richest person in India. It should not come as a surprise that CZ would take the initiative to call attention to the falsehoods that have been reported, given that he has been critical of the way that the cryptocurrency business is portrayed by mainstream media sites. He has made a number of denials about the information that was provided by authoritative sources such as Bloomberg and Forbes, often labeling such stories as FUD, which stands for fear, uncertainty, and doubt.

CZ’s critical position on the industry’s depiction in mainstream media was clear in his reaction to a story published by Forbes, which said that Binance had proceeded with a “backroom maneuver” involving a $1.8 billion transaction in 2022. The article claimed that Binance had done this in order to circumvent regulatory oversight. It was his contention that Forbes “don’t know how an exchange works.” In a similar manner, he disproved a story from Bloomberg that said Binance was contemplating severing connections with its US-based business partners.

In addition to correcting certain errors that had been made in the article, CZ said in his tweet that he does not consider the defunct FTX bitcoin exchange to be a competitor of his company’s. He emphasized the need of better-run exchanges in the cryptocurrency market and expressed his satisfaction with the increasing number of well-run exchanges in the sector.

The cryptocurrency market is receiving a growing amount of attention from the mainstream media as a result of stories detailing its enormous growth potential and adoption by institutional investors. Nevertheless, CZ’s criticism of the mainstream media draws attention to the need of truthful reporting on the innovations and evolution of the business.

CZ’s rejection of Bloomberg’s net worth report and his critical attitude on the depiction of the cryptocurrency sector in mainstream media both underscore the need of factual reporting. In conclusion, CZ’s position on the representation of the cryptocurrency industry in mainstream media is crucial. Reporting that is well-informed and provides a fair picture of the innovations and progress of the industry is required because of the growth potential of the sector and the rising usage of its products.