FTX used $200M of consumer funds for 2 risky venture deals that drew scrutiny.
By The Exchange Team
As per SEC, $200M billions of customer deposits in FTX, went in a flash to support two company investments.
Which accused founder Sam Bankman-Fried of "orchestrating a conspiracy to swindle equity investors".
In March, the crypto firm's FTX Ventures branch invested $100M in Dave, a fintech business that had gone public 2 months earlier.
The companies stated at the time that they would "collaborate to expand the digital assets ecosystem."
The SEC also mentioned a September $100 million investment round for Web3 company Mysten Labs.
Coinbase Ventures, Binance Labs, and Andreessen Horowitz's crypto fund invested $300M in Mysten, valuing it at $2B.
FTX Ventures has made dozens of transactions, but PitchBook lists only two $100 million investments: Mysten Labs and Dave.