New Revelation: FTX's Acquisition of Blockfolio Paid in FTT Tokens Which are Now Virtually Worthless – Here's What You Need to Know

When the now-bankrupt crypto exchange FTX acquired the crypto mobile app Blockfolio, payment was not made in cash but instead in the form of FTX's own FTT tokens, financial statements have revealed.

Timeline of Ftx-token

On Dec. 21, 2022, members of U.S. law enforcement detailed that FTX co-founder Gary Wang and ex-Alameda Research CEO have pleaded guilty to financial fraud charges. The recent charges against Wang and Ellison highlight some key findings and according to the U.S. Securities and Exchange Commission (SEC), FTX's exchange token FTT is considered a security.

According to a recent filing by the US SEC, FTX's native token FTT is now classified as a security. According to the watchdog, FTX's and Alameda's activities with the token classified it as one.

Defunct cryptocurrency exchange FTX (CRYPTO: FTT) used its own exchange token, FTT, to pay for the acquisition of the tracking website Blockfolio in 2020. Around 94% of the $84 million deal was paid for with the FTT tokens that FTX created, according to financial documents, Bloomberg reported.

The United States Securities and Exchange Commission (SEC) has alleged in its complaint filed on 21 December that the now-bankrupt crypto exchange FTX's native token FTT was sold as an investment contract, and is a “security.”

The SEC stated that the operations of the FTT token and the buy-and-burn program initiated by crypto exchange FTX are synonymous with stock buyback and thus constitute the behavior of securities.

The United States Securities and Exchange Commission, in its filing against Caroline Ellison and Gary Wang, said that the FTX's exchange token (FTT) is considered a security, given that it was sold as an investment contract. The post SEC filing declares FTT a security in FTX case development appeared first on CryptoSlate.

When now-defunct crypto exchange FTX acquired the portfolio tracking platform Blockfolio in 2020, it reportedly used its own exchange token, FTT, to fund the takeover. The post FTX funded 94% of Blockfolio takeover with its FTT token: Bloomberg appeared first on The Block.

The complaint specifically noted that FTX used proceeds from the FTT token sale to fund its business efforts. The post FTX's FTT token labeled a security in SEC complaint appeared first on The Block.

Despite FTX's collapse last month, the trading platform's crypto token FTT had managed to not plummet all the way down to zero, and surprisingly it hovered below the $2 per unit region after Nov. 12, 2022. For 38 days FTT remained above the $1 per unit area up until Dec.

Upon the news that the founder of the collapsed crypto trading platform FTX has been arrested, many cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH) included, are recording modest gains, whereas FTX Token (FTT), the native token of the crypto derivatives trading platform, keeps losing ground.