Former Alameda Research CEO Claims SBF Considered Investment from Saudi Crown Prince for FTX
In court, former Alameda Research CEO Caroline Ellison revealed that Sam “SBF” Bankman-Fried, the CEO of FTX, had explored the possibility of raising equity for the crypto exchange through an investment from Saudi Crown Prince Mohammed bin Salman, also known as MBS. Ellison stated that she had discussions with Bankman-Fried in 2022 about hedging Alameda investments. According to her testimony, Bankman-Fried mentioned that MBS was a potential investor in FTX before its collapse in November.
Potential Investment and Other Concerns
Caroline Ellison’s online journal titled “Things Sam is Freaking Out About” included a note about “raising funds from MBS.” Prosecutors had previously mentioned this list and intended to present it as evidence during the trial. The list also mentioned Bankman-Fried’s plan to turn regulators against Binance, another crypto exchange. It is worth noting that MBS has invested in blockchain gaming through Saudi Arabia’s sovereign wealth fund but has also been linked to the assassination of journalist Jamal Khashoggi in 2018.
Hot Take: Controversial Connections Raise Questions
The revelation that SBF considered an investment from Saudi Crown Prince Mohammed bin Salman for FTX raises concerns about the crypto industry’s associations with individuals involved in controversial activities. While seeking investments is a common practice, it is essential for crypto exchanges to carefully consider the reputation and ethical implications of their potential investors. This case highlights the need for transparency and responsible decision-making within the industry to maintain trust and credibility among users and regulators alike.
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