Who invested in FTX Trading Ltd.

analysisThe SEC's complaint against Caroline Ellison and Gary Wang (21 December 2022) states that FTX Trading Ltd. raised at least $1.8 billion from equity investors: about $8 million of Series A preferred stock (completed around August 2019), about $1 billion of Series B preferred (around July 2021), about $420 million of Series B-1 (around October 2021) and about $500 million of Series C (around January 2022); about $1.1 billion came from roughly 90 investors based in the United States. FTX Trading's own Form D of 2 November 2021 reported an offering under Rule 506(b) with a first sale on 18 October 2021, a total of $415,341,812, all sold, and 85 investors. ^{1 2}

analysisThe debtors' first-day presentation charts the group's financing from November 2019 to January 2022: a Series A in which Binance entered a strategic partnership and invested, followed by Binance's divestment of its whole stake; a Series B of $1 billion (investors including Sequoia, Paradigm and Thoma Bravo); a Series B-1 of $420 million (including the Ontario Teachers' pension plan, Tiger Global and BlackRock); a Series C of $500 million (including Paradigm, SoftBank and Temasek); and a separate $400 million Series A (including Multicoin, Paradigm and Sequoia). The chart's text does not show which rounds belonged to FTX Trading Ltd. and which to West Realm Shires Inc.; the $1 billion, $420 million and $500 million rounds match those the SEC attributes to FTX Trading Ltd. ³

analysisThe same presentation quotes Binance's chief executive as saying that, on leaving FTX's equity, Binance received roughly $2.1 billion in cash equivalents, in BUSD and FTT. The SEC's complaint adds that on 6 November 2022 Binance held FTT then worth more than $500 million that it had received from FTX when Bankman-Fried bought out its stake as an early-round investor. Neither source names the FTX company that bought the stake or the date of the buyout. ^{1 2}

analysisFTX Trading Ltd.'s equity holder list, filed on 9 January 2023, includes Artz Fund Investments Pte Ltd. of Singapore (contact at a Temasek address) with 1,526,228 common, 3,815,337 Series B and 381,557 Series B-1 preferred shares; Paradigm Green Fortitudo LP and Paradigm One LP with Series B and C preferred shares; SVF II Tempest (DE) LLC, with SoftBank contacts, with 2,861,504 Series B and 215,741 Series C preferred shares; two Thoma Bravo growth funds with 4,578,406 Series B preferred shares between them; Tiger Global PIP 15 LLC; Third Point Ventures LLC, as nominee for funds advised by Third Point, with 431,482 Series C preferred shares; SCGE Fund, L.P. (Sequoia contact) and Sequoia Capital Global Growth Fund III - Endurance Partners; and 2873313 Ontario Limited, with Ontario Teachers' Pension Plan contacts, with 2,233,504 common and 558,376 Series B-1 preferred shares. Nishad Singh is listed with 44,000,000 common shares. ¹

analysisThe holder lists also show a SkyBridge fund, SkyBridge Multi-Adviser Hedge Fund Portfolios LLC – Series G, with 244,196 common and 61,049 Series B-1 preferred shares of FTX Trading Ltd. and 1,310,000 Class A common shares of West Realm Shires Inc. The fund is a separate entity from SkyBridge Capital II, LLC, which is discussed on the Chapter 11 page, and the lists do not show when or at what price the shares were bought. West Realm Shires Inc.'s own list shows Bankman-Fried with 791,303,000 Class A and 1,116,389,000 Class B common and 109,409,190 Series A preferred shares, Wang with 247,545,000 Class A and 356,624,000 Class B common shares, Ryan Salame with 5,520,000 Class A common shares and the Temasek-linked Artz Fund with Class A common and Series A preferred shares. ¹