Semafor, a news startup has announced plans to return funds tied to FTX founder Sam BankmanFried.
According to the company’s statement, Semafor received a “substantial” investment from SBF Ventures in 2019, which was founded by Bankman Fried. The startup is now returning the funds due to recent controversy around Bankman-Fried’s and FTX.
Bankman-Fried’s participation in the Gamestop short squeeze in early this year led to significant losses for some retail investor. There have been claims of insider trading and market manipulation involving FTX.
Semafor describes itself as an “unbiased and credible source of news, analysis and information for the crypto- and blockchain industry,” and has said that it does NOT want to be involved in any questionable activities.
According to the company’s statement, “We believe it important to uphold high ethical standards within the industry, and don’t want our association with SBF Ventures be a distraction to our mission.”
Semafor said it would return the funds “as quickly as possible” but that it was committed to maintaining its independence.
The crypto community has supported the decision to return the funds, with many praising Semafor’s bravery in taking a stand against any wrongdoing within the industry. It remains to be seen if the controversy surrounding Bankman-Fried or FTX will be resolved.