Sam Bankman-Fried is expected to receive up to $100 million as a result of Elon Musk’s purchase of Twitter

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Last Updated on October 31, 2022 by Bitfinsider

As the founder and CEO of the cryptocurrency exchange FTX, Sam Bankman-Fried stands to gain anywhere from $50 million to $100 million as a result of Elon Musk’s purchase of Twitter.

According to a source who has insider knowledge of the case, the Cryptocurrency Exchange executive giant possessed somewhere between fifty and one hundred million dollars’ worth of stock in the social media behemoth before the acquisition was finalized on Thursday. The price that Musk paid to take Twitter private was $44 billion, which would put Bankman-Fried holding’s at somewhere between 0.1% and 0.2% of the company.

After months of back-and-forth negotiations, Musk, the billionaire CEO of Tesla and SpaceX, finally closed the deal on his acquisition of Twitter last week. As soon as he took over, he left his imprint on the company by sacking the CEO, Parag Agrawal, along with several other top employees. At the same time, he sent a message of apology to advertisers, stating that “Twitter aspires to be the most respected advertising platform in the world.” Trading in Twitter’s shares was halted on Friday, and the company’s stock was officially delisted the following Monday, November 8.

According to the source, Bankman-Fried had intended to invest in the arrangement between Musk and Twitter but ultimately decided against doing so. A telephone conversation between Musk and the CEO of FTX allegedly resulted in the latter informing the former that he was no longer interested in the partnership.

Meeting among Billionaires

According to a series of texts that were made public about a month ago as part of Twitter’s lawsuit to force Musk to finish the transaction, the crypto executive, also known as SBF, had promised to putting up as much as $15 billion. The lawsuit was filed to force Musk to complete the transaction.

Bankman-Fried advisor’s Will MacAskill had sought to arrange up a meeting between the two billionaires in March; however, Musk appeared to have doubts about Bankman-Fried abilities to invest in Twitter. Musk had inquired of MacAskill concerning the availability of “large amounts of money” held by Bankman-Fried. MacAskill had stated at the time that Bankman-Fried had a value of approximately $24 billion and that the company would be willing to contribute anywhere from $8 billion to $15 billion. Later in the month of April, MacAskill had a conversation about funding with a banker at Morgan Stanley named Michael Grimes. Grimes then informed Musk that Bankman-Fried would be willing to commit up to $5 billion.

Still, Musk gave the impression of being less enthusiastic about the transaction by stating that he did not wish to “have a laborious blockchain dispute” with Bankman-Fried.

In the meantime, FTX competitor Binance has been identified as an investor in Twitter. According to a tweet published on Friday by Binance’s founder and CEO, Changpeng Zhao, the company had promised to invest $500 million in the social network concurrently with Musk’s takeover of the company and ultimately wired that amount of money. At this pricing, Binance’s position in Twitter amounts to around 1.1% of the company’s total value.

According to Zhao, the primary objective of Binance’s investment is to play a part in bringing social media and web3 together in order to extend the application of crypto and blockchain technology and increase its rate of adoption.

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