TechDigits

Tech news
Tuesday, Apr 23, 2024

Sam Bankman-Fried was reported to own a $100 million stake in Elon Musk's Twitter. Musk says that's a lie.

Sam Bankman-Fried was reported to own a $100 million stake in Elon Musk's Twitter. Musk says that's a lie.

Musk denied that Sam Bankman-Fried or FTX own shares of Twitter since the Tesla CEO took the company private, refuting a recent report from Semafor.
Elon Musk is denying that embattled FTX founder Sam Bankman-Fried or FTX own shares of Twitter since the Tesla CEO took the company private, rejecting a recent report from Semafor.

On Tuesday, Semafor reported that the Tesla CEO had texted Bankman-Fried on May 5, inviting him to roll over his public Twitter shares into a stake in Musk's privately-held company, a few weeks after Musk offered to buy Twitter for $44 billion.

"As I said, neither I nor Twitter have taken any investment from SBF/FTX," Musk tweeted on Wednesday in response to Semafor and its editor-in-chief Ben Smith. "Your article is a lie."

"He may have owned shares in Twitter as a public company, but he certainly does not own shares in Twitter as a private company," Musk said in a separate tweet.

Semafor reported that Musk's text in May followed a message from Bankman-Fried in which he expressed his support for Musk's plans for Twitter and said he wouldn't be able to invest new money in Twitter. According to the report, the crypto founder added he had about $100 million in stock he could roll over into the deal.

Meanwhile, the Financial Times reported that an FTX balance sheet dated November 10 listed Twitter shares as an "illiquid" asset.

Spokespeople for Twitter and FTX did not respond to a request for comment from Insider ahead of publication.

Musk initially responded to Insider's story on Semafor's report in a tweet, calling it "False." One person familiar with the deal also told Insider that it was "totally false" to say SBF had a stake in Twitter.

Musk also has pointed out that Bankman-Fried was an investor in Semafor, the media outlet that reported that Bankman-Fried had a stake in Twitter.

The site's editor-in-chief, Ben Smith, acknowledged the investment. "Like you and many others, we took an investment from him," Smith said in a response to Musk on Twitter. "We have covered him aggressively, and disclose it every time we write about him, including here."

In a later response to Musk on Twitter on Wednesday, Smith posted a screenshot of a text conversation he said was between Musk and Bankman-Fried: "Here's the text message from @elonmusk telling SBF he's 'welcome' to roll his public shares into Musk's twitter, as Liz reported," he said, referring to the Semafor reporter Liz Hoffman.


A regulatory filing from May of this year listed 18 investors that had committed to invest in Musk's private Twitter, including FTX rival Binance and investors like Sequoia and Fidelity. FTX and Sam Bankman-Fried weren't on the list.

Several texts between Musk and Bankman-Fried regarding the Twitter takeover were previously revealed in September during the pretrial discovery process for Twitter's lawsuit against Musk over his attempts to ditch his purchase of the social app.

Bankman-Fried's adviser, Will MacAskill, had reached out to Musk in March saying the FTX founder had considered buying Twitter himself and would be willing to contribute as much as $8 billion to $15 billion to Musk's purchase.

The two men connected over the phone, and Bankman-Fried later decided not to invest in the acquisition, Axios previously reported.

Since then, Musk has repeatedly dissed Bankman-Fried on Twitter. Earlier this month, Musk said on Twitter Spaces that his "bullshit meter was redlining" when he first met the FTX founder.


"Man, everyone including major investment banks — everyone was talking about him like he's walking on water and has a zillion dollars, and that was not my impression," Musk said. "That dude is just — there's something wrong, and he does not have capital, and he will not come through. That was my prediction."

Musk's made the comments shortly after news broke on that FTX was filing for Chapter 11 bankruptcy after failing to secure emergency funding. Bankman-Fried stepped down as CEO and lost 94% of his net worth the same day, per Bloomberg.

Bankman-Fried isn't the only one to roll over his public shares. Twitter cofounder Jack Dorsey transferred about $1 billion into the private company.
Newsletter

Related Articles

TechDigits
0:00
0:00
Close
FTX's Bankman-Fried headed for jail after judge revokes bail
America's First New Nuclear Reactor in Nearly Seven Years Begins Operations
Southeast Asia moves closer to economic unity with new regional payments system
Today Hunter Biden’s best friend and business associate, Devon Archer, testified that Joe Biden met in Georgetown with Russian Moscow Mayor's Wife Yelena Baturina who later paid Hunter Biden $3.5 million in so called “consulting fees”
Google testing journalism AI. We are doing it already 2 years, and without Google biased propoganda and manipulated censorship
Musk announces Twitter name and logo change to X.com
The future of sports
TikTok Takes On Spotify And Apple, Launches Own Music Service
Hacktivist Collective Anonymous Launches 'Project Disclosure' to Unearth Information on UFOs and ETIs
Typo sends millions of US military emails to Russian ally Mali
Server Arrested For Theft After Refusing To Pay A Table's $100 Restaurant Bill When They Dined & Dashed
Democracy not: EU's Digital Commissioner Considers Shutting Down Social Media Platforms Amid Social Unrest
Sarah Silverman and Renowned Authors Lodge Copyright Infringement Case Against OpenAI and Meta
Why Do Tech Executives Support Kennedy Jr.?
The New York Times Announces Closure of its Sports Section in Favor of The Athletic
Florida Attorney General requests Meta CEO's testimony on company's platforms' alleged facilitation of illicit activities
The Poor Man With Money, Mark Zuckerberg, Unveils Twitter Replica with Heavy-Handed Censorship: A New Low in Innovation?
The Double-Edged Sword of AI: AI is linked to layoffs in industry that created it
US Sanctions on China's Chip Industry Backfire, Prompting Self-Inflicted Blowback
Meta Copy Twitter with New App, Threads
BlackRock Bitcoin ETF Application Refiled, Naming Coinbase as ‘Surveillance-Sharing’ Partner
UK Crypto and Stablecoin Regulations Become Law as Royal Assent is Granted
A Delaware city wants to let businesses vote in its elections
Alef Aeronautics Achieves Historic Milestone with Flight Certification for World's First Flying Car
Google Blocked Access to Canadian News in Response to New Legislation
French Politicians Advocate for Pan-European Regulation on Social Media Influencers
Melinda French Gates Advocates for Increased Female Representation in AI to Prevent Bias
Snapchat+ gains 4 million paying subscribers in its first year
Apple Makes History as the First Public Company Valued at $3 Trillion
Elon Musk Implements Twitter Limits to Tackle Data Scraping, but Faces Criticism for Technical Misunderstanding
EU and UK's Slow Electric Vehicle Adoption Raises Questions About the Transition to Green Mobility
Top Companies Express Concerns Over Europe's Proposed AI Law, Citing Competitiveness and Investment Risks
Meta Unveils Insights on AI Usage in Facebook and Instagram, Amid Growing Calls for Transparency
Crypto Scams Against Seniors Soar by 78% in 2022, Experts Urge Vigilance
The End of an Era: National Geographic Dismisses Last of Its Staff Writers
Shield Your Wallet: The Perils of Wireless Credit Card Theft
Harvard Scientist Who Studies Honesty Accused Of Data Fraud, Put On Leave
Putting an End to the Subscription Snare: The Battle Against Unwitting Commitments
The Legal Perils of AI: Lawyer Faces Sanctions for Relying on Fictional Cases Generated by Chatbot
ChatGPT’s "Grandma Exploit": Ingenious Hack Exposes Loophole in AI, Generates Free Software Codes
The Disney Downturn: A Near Billion-Dollar Box Office Blow for the House of Mouse
A Digital Showdown: Canada Challenges Tech Giants with The Online News Act, Meta Strikes Back
Distress in the Depths: Submersible and Passengers Missing in Titanic Wreckage Expedition
Mark Zuckerberg stealing another idea: Twitter
European Union's AI Regulations Risk Self-Sabotage, Cautions smart and brave Venture Capitalist Joe Lonsdale
Nvidia GPUs are so hard to get that rich venture capitalists are buying them for the startups they invest in
Chinese car exports surge
Reddit Blackout: Thousands of Communities Protest "Ludicrous" Pricing Changes
Nvidia Joins Tech Giants as First Chipmaker to Reach $1 Trillion Valuation
AI ‘extinction’ should be same priority as nuclear war – experts
×