Last week Elon Musk commented on the collapse of the FTX cryptocurrency exchange and his connection to its former CEO, Sam Bankman-Fried (SBF), who is caught in the middle of the financial catastrophe.
In the span of a week, the world's second-largest cryptocurrency exchange collapsed after experiencing the digital version of a bank run combined with a crash that reduced the value of the assets it was holding. The result was that FTX had to file for bankruptcy, sending former CEO and co-founder Sam Bankman-Fried's net worth down by 94% in a single day, Bankman-Fried was worth an estimated $15.6 billion prior to the collapse.
In leaked emails between Elon Musk and Mike Grimes, the FTX co-founder is brought up as a potential investor in Musk's $44 billion bid to purchase Twitter, which was originally made back in March. Musk confirmed in a tweet reply that SBF was trying to get into contact with Musk about investing $3 billion in Twitter and was interested in further integrating blockchain technology into the social media platform.
From the responses in the leaked emails, its clear that Musk is speculative about SBF actually having the money he was claiming was available for investment. The now-Twitter-owner wrote back, "Does Sam actually have $3b liquid?", to which Grimes replied, "Ithink Sam has it yes, he actually said up to 10 at one point, but in writing, he said up to 5".
Musk said in a follow-up tweet that the emails were accurate and that SBF "set off my bs detector, which is why I did not think he had $3B".
Now, a report from Semafor has alleged that the Elon Musk-SBF relationship didn't end there and that further communication between the two parties took place. The publication claims that it has reviewed an unreported message between Musk and SBF that occurred two weeks after the deal to purchase Twitter was secured and that SBF was asked to roll his $100 million stake in public Twitter into Musk's privately held Twitter.
The publication reports that SBF followed Musk's request and rolled over his $100 million in stock into Musk's private Twitter. An FTX balance sheet passed around to investors also listed the exchange had Twitter shares as an "illiquid" asset.
In other FTX news, a customer of FTX is moving to sue the Golden State Warriors for allegedly promoting a ponzi-like scheme. More on that story can be found below.