Media Startup Semafor to Buyback Sbf’s Stake of $10 Million 

• Semafor raised $25 million in a seed round in October 2022, of which $10 million came from SBF. 
• They disclosed this on December 2, 2022, but at the time, they had no plans for a buyback. 
• After internal discussion, they put aside the money required for a buyback. 

Sam Bankman-Fried has been in the news headlines ever since FTX collapsed, and people are trying to unearth all his deeds that might have caused harm or affected anyone. This is all done to strengthen the case. Recently, media startup Semafor said on January 18, 2023, that they had raised $25 million, of which $10 million came from SBF, making him the biggest partner. 

Semafor is trying to buy back the stake of SBF’s $10 million, raising money from other sources to clear it, as they do not want any exposure with the ex-CEO of now bankrupt and once third largest crypto exchange on the planet, FTX. 

Semafor wanted to launch its new website in October 2022 and sought funding. They raised $25 million in a seed funding round, and $10 million came from Sam Bankman-Fried. The decision to return to SBF placed them on the list of news sites and political groups who assured of giving back all to SBF and FTX executives.

SBF is not the only investor here; Brazil’s richest man, Jorge Paul Lemann, is also one of the investors. According to the legal filings, Jorge and his business partner at buyout firm 3G Capital Inc. are mainly accused of “the biggest fraud in Brazil’s capital market.”

On December 2, 2022, Semafor disclosed the investment SBF had in the company, but there was no commitment to return the money at the time. Only discussion with attorneys and government agencies was hinted at the time to decide the future course of action. 

Then Semafor’s co-founder, Justin Smith, stated that “we are planning to repurchase Sam Bankman-Fried’s interest in Semafor and place the money into a separate account until the relevant legal authorities provide guidance as to where the money should be returned.”

It is known that SBF has been a frequent contributor to media groups and politicians, and this money was used to influence and manipulate either the regulation in his favor or the general audience into investing in his exchange. Overall this was done to set an advantageous narrative for FTX. 

Since FTX filed for bankruptcy on November 11, 2022, many companies he had invested in or somehow was a part of have distanced themselves. CEO of the crypto news site, the Block, had to resign from his post on December 9 after discovering that he obtained loans from Alameda research and had not disclosed the information to the public. 

The new CEO said that this non-disclosure was “a serious lack of judgment” by the previous CEO and has sternly denied the possibility that these loans had affected the company’s editorial decisions. 

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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