$150M Made From Insider Deal On FTT Tokens: Report
• Charity tied to former FTX executive made $150M from insider deal on FTT tokens
• Ruairi Donnelly, the former executive, was reportedly given FTT tokens at a price of $0.05 and sold them for $1 when public trading opened
• FTX filed for bankruptcy in November, sparking legal proceedings and scrutiny over donations to charities from the exchange
Former FTX Exec Donates Tokens
The former chief of staff at FTX, Ruairi Donnelly, reportedly „donated“ FTT tokens he had obtained at a price of $0.05 to Polaris Ventures, a charity created by him. Later when public trading opened, the tokens were sold for $1 resulting in millions of dollars being earned by the charity.
FTX Files Chapter 11 Bankruptcy
After much public scrutiny of FTX and Alameda and their former CEOs, FTX filed for Chapter 11 bankruptcy in November leading to funds held by the exchange being seized or frozen by authorities.
Donnelly’s Legal Team Defends Actions
Donnelly’s legal team asserted that his donated tokens „were not FTX’s funds“ and seemingly not subject to claims from other parties.
Debtors Make Arrangements For Return Of Funds
In response to this situation debtors for the exchange said on Dec. 19 they would „make arrangements for the return“ of funds donated to charities or political campaigns if any group refused payment with interest.
This article discussed how Ruairi Donnelly made millions through his donation of FTT tokens to Polaris Ventures which he created himself as well as how FTX filed for Chapter 11 bankruptcy resulting in some wallets and funds tied to it being seized or frozen due to legal proceedings. The article concluded with debtors making arrangements for return of these funds if any group refuses payment with interest.