Media startup says it will buy back $10 million stake from Sam Bankman-Fried

Media startup Semafor introduced on January 18 that it’ll attempt to purchase again Sam Bankman-Fried, former CEO of FTX, his stake within the firm for $10 million, based on a report revealed on January 18 by the New York Occasions. The report claimed that Semafor will attempt to increase cash from different sources to make up for what it’s giving again.

The $10 million was a part of a $25 million seed funding spherical that enabled Semafor to launch its information web site, launched in October 2022.

Semafor is the most recent in a string of reports websites and political teams which have stated they may return cash given to them by the failed exchanges and their executives.

There was revealed the funding on December 2, however on the time had made no dedication to return the cash, saying solely that it might seek the advice of with attorneys and authorities businesses earlier than deciding what to do subsequent. This new report quoted the co-founder of the corporate, Justin Smith, as stating that “We’re planning to purchase again Sam Bankman-Fried’s stake in Semafor, and place the cash in a separate account till we have now steering from the related authorized authorities as to the place the cash ought to be returned.”

Sam Bankman-Fried was an everyday contributor to politicians and the media, and critics have accused him of making an attempt to make use of these contributions to affect the narrative about his corporations. Some corporations have tried to distance themselves from him and his corporations because the alternate he based went bankrupt. On Dec. 9, the CEO of crypto information web site The Block resigned after it was found that he had obtained loans from Alameda Analysis, an affiliate of SBF’s FTX Group, which he had not disclosed publicly.

The brand new CEO of The Block has referred to as this lack of disclosure a “critical lack of judgement” on the a part of the earlier CEO. and has strongly denied that the monetary settlement had any impact on the corporate’s editorial choices.

FTX filed for chapter in November 2022 after struggling a liquidity disaster that prevented it from dealing with withdrawals. Sam Bankman-Fried was arrested on fraud fees and pleaded not responsible on January 3.

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