WSJ: FTX Crisis Spreads To Giant Bitcoin (BTC) Company, Sam Bankman-Fried Sends $1 Billion!

According to the Wall Street Journal, Alameda Research, owned by Sam Bankman-Fried, is the largest employee based in Kazakhstan last year. Bitcoin (BTC) invested $1 billion in Genesis Digital Assets, one of the mining companies.

Sam Bankman-Fried Invests $1 Billion in Bitcoin Mining Company Genesis Digital Assets

Sam Bankman-Fried’s $1 billion investment in this company was unusually large even for the conditions at the time, and it also eclipsed the FTX founder’s investments in other companies.

It should be noted that Genesis Digital Assets has nothing to do with Genesis Trading company within DCG.

It can be difficult to get these investments back from Genesis Digital. Bitcoin mining company valuations have dropped a lot lately. According to Cyprus corporate registration documents and people familiar with Genesis Digital, only about half of Alameda funds in Genesis Digital went into the company’s operations.

More than $500 million bought the existing shares of the two co-founders of Genesis Digital, a previously unreported detail.

A Genesis Digital spokesperson said the company receives money “at market value” during its regular fundraising process from Alameda, and its founders own most of the company.

Anthony Scaramucci’s company, SkyBridge Capital, which has invested more than $60 million in Genesis Digital, has dropped its stake in the Bitcoin mining company by 59% from its peak in June to September, according to SkyBridge securities filings.

A significant portion of what’s left for FTX and Alameda creditors is multiple investments in startups like Genesis Digital. According to Alameda company documents viewed by The Wall Street Journal, FTX, Alameda and other entities controlled by Bankman-Fried have invested more than $5 billion in more than 150 startups alongside venture firms such as Sequoia Capital.

*Not investment advice.