shocked! 😮The author of "The Big Short", Michael Lewis, broke the news in his new book "Going Infinite" that in order to get rid of regulatory pressure, FTX founder SBF actually spent US$2.275 billion to repurchase CZ's FTX shares! This is an astronomical figure!
It is reported that with the increasing regulatory scrutiny, especially the regulatory agencies’ strict requirements on the list of FTX investors and their personal details, SBF believes that maintaining CZ as FTX’s second largest shareholder is no longer in the company’s long-term interests. A former Binance employee revealed that CZ seemed somewhat reluctant to provide private information such as family and residence when asked.
In order to avoid this regulatory pressure, SBF proactively proposed to CZ in mid-2021 to repurchase the FTX shares it purchased for US$80 million at the end of 2019. Unexpectedly, CZ actually proposed an asking price of US$2.2 billion! Although the price was high, SBF agreed to pay. However, when the two parties were about to sign a formal agreement, CZ suddenly requested an additional $75 million. SBF ultimately agreed to this additional fee and completed the share buyback.
What do you think about this sky-high buyback? Feel free to speak freely in the comment area and discuss this topic together! 👇
It is reported that with the increasing regulatory scrutiny, especially the regulatory agencies’ strict requirements on the list of FTX investors and their personal details, SBF believes that maintaining CZ as FTX’s second largest shareholder is no longer in the company’s long-term interests. A former Binance employee revealed that CZ seemed somewhat reluctant to provide private information such as family and residence when asked.
In order to avoid this regulatory pressure, SBF proactively proposed to CZ in mid-2021 to repurchase the FTX shares it purchased for US$80 million at the end of 2019. Unexpectedly, CZ actually proposed an asking price of US$2.2 billion! Although the price was high, SBF agreed to pay. However, when the two parties were about to sign a formal agreement, CZ suddenly requested an additional $75 million. SBF ultimately agreed to this additional fee and completed the share buyback.
What do you think about this sky-high buyback? Feel free to speak freely in the comment area and discuss this topic together! 👇