There have recently been rumors that Sam Bankman-Fried, the creator of the now-bankrupt cryptocurrency exchange FTX, holds a $100 million investment in Twitter.
Elon Musk texted SBF at the beginning of May, urging him to convert his publicly traded Twitter shares into stock in the firm, according to a recent Semafor report. According to the report, Bankman-Fried "owns a sizeable chunk of the now-privately controlled Twitter. And now that FTX collapsed earlier this month, Musk, who had previously publicly dissociated himself from the crypto entrepreneur, counts him as a financial partner in his endeavor to reinvent Twitter.
In a subsequent tweet in response to Semafor, Musk stated: SBF is the owner of Semafor. There is a massive conflict of interest in the reporting because of this. Journalistic integrity is trash, he said.
According to a prior report, SBF has been amassing Twitter stock in preparation for its prospective takeover. Musk has only offered a hazy denial thus far in reaction to a story stating that SBF "owns a $100 million share."
He still needs to clarify which information in the paper he believes to be inaccurate or whether the FTX founder was engaged in the transaction. The fact that SBF was a supporter, which the newspaper admits in its coverage of the FTX situation, has also been brought up by Musk in his criticism of Semafor.
One of the company's illiquid assets is $43 million in Twitter shares, according to the FTX balance sheet that was leaked earlier this month. The fact that SBF was a supporter, which the newspaper admits in its analysis of the FTX situation, has also been brought up by Musk in his criticism of Semafor.
SBF and Musk were introduced in March by Will MacAskill, an Oxford philosophy professor alleged to have counseled SBF on his "effective altruism" principles. Text messages made public as part of Twitter's lawsuit requiring Musk to follow through with his takeover offer revealed that.
But over the last week, Musk has asserted that his initial encounters with the creator of FTX raised red flags. Bankman-Fried, he claimed, "set off my BS detector."
In a Twitter Space, he went into further detail: "I talked to him for about half an hour, and my BS meter was like red-lining. This dude is full of sh*t. That was my first impression."
Musk was referring to when he was searching for more investors to contribute to the Twitter acquisition, and later, he predicted that SBF would not come through since he needed more funds.
FTX's opponent and potential rescuer, Binance, ultimately contributed $500 million to Musk's acquisition of Twitter. As we previously reported, Binance abandoned the notion of acquiring FTX, which is ironic for the FTX inventor.