FTX investors included Robert Kraft, Paul Tudor Jones: new filings

FTX founder Sam Bankman-Fried exits the courthouse following his arraignment in New York City on December 22, 2022.

Ed Jones | AFP | Getty Images

It wasn’t just Tom Brady and Gisele Bundchen.

Among the high-profile investors who lost money betting on crypto exchange FTX were New England Patriots owner Robert Kraft and billionaire hedge fund manager Paul Tudor Jones, according to court filings released late Monday.

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Sam Bankman-Fried’s well-documented success in raising money and charming investors extended to a broader group of prominent investors and notable financiers than was previously announced. FTX went through four rounds of fundraising to reach a $32 billion valuation early last year before finally filing for bankruptcy in November.

Bankman-Fried, co-founder and former CEO of FTX, has pleaded not guilty to multiple criminal charges including fraud and money laundering. In December, he was released on $250 million bail while awaiting trial.

For venture capitalists, FTX represents a loss of historic proportions. Sequoia Capital announced in November that it had reduced its investment from over $210 million to zero. Before former shareholders can attempt to recover their investments, clients have a long road to recovery as the bankruptcy process winds its way through courts and dozens of jurisdictions.

FTX’s venture investors have included a variety of luminaries. Dan Loeb controlled over 6.1 million preferred stock through venture funds associated with Third Point. rival exchange coin base held almost 1.3 million preferred shares.

Jones, the founder of Tudor Investment, apparently owned shares through a number of family trusts. Kraft controlled 155,144 preferred shares through previously undisclosed investments in FTX.

Brady, who at 45 is the winningest quarterback in National Football League history, was a noted supporter of FTX and a pitchman for the company. He held common stock in the company alongside Bundchen. The celebrity couple announced their divorce in October after 13 years of marriage.

CNBC has compiled and analyzed the following preferred stock holdings from Delaware bankruptcy court filings.

Series B: July 2021

Although this July 2021 fundraising round was dubbed a Series B raise, it was FTX’s first leverage injection, with the exception of an early investment by Binance, which was eventually settled. Investors included Paradigm and Sequoia, as well as Thoma Bravo and Third Point. The $900 million round valued FTX at $18 billion.

Jones, who told CNBC in October 2022 that his exposure to Bitcoin was “small,” appears to have invested in FTX through a series of family trusts.

Series B-1: October 2021

Series C: January 2022

FTX US Series A: January 2022

FTX, which is based in the Bahamas, formed FTX US in response to US cryptocurrency trading regulations. Regulators have since claimed that FTX US was separated from FTX’s international arm in name only.

In an attempt to establish its independence, FTX US closed a $400 million funding round in January 2022 from investors including Singaporean sovereign wealth fund Temasek and Masayoshi Son’s SoftBank Vision Fund. Among previously unnamed venture capitalists for the round was owned by Willoughby Capital, Kraft and Daniel Och’s family office.

Pursuant to bankruptcy filings and regulatory complaints, funds and client assets moved freely between FTX entities. Although FTX US clients are partially regulated by the Commodity Futures Trading Commission, they face an equally arduous process in a bankruptcy court to try to recover some of their money.

Stock investors in FTX US, like those in FTX, are staring at a zero.

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https://www.cnbc.com/2023/01/10/ftx-investors-included-robert-kraft-paul-tudor-jones-new-filings.html FTX investors included Robert Kraft, Paul Tudor Jones: new filings


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