FTX's Criminal Trial Reveals Potential Investors: BlackRock and Google in the Mix

In a surprising turn of events, evidence presented in Sam Bankman Fried's criminal trial on Thursday revealed that FTX, the once-promising crypto exchange, had engaged BlackRock and Google as potential investors. The evidence included a spreadsheet maintained by FTX's former general counsel, Can Sun, which detailed various fundraising rounds, including one that Sun claimed "never closed." According to Sun's testimony, FTX's C1 funding round began in the late summer and fall of 2022. The spreadsheet indicated that 15 potential investors, including BlackRock, Google, and Apollo, were to be engaged promptly. Sun recalled discussions with Apollo, stating that they were asked to invest in FTX in order to address a liquidity problem the exchange was facing with customer withdrawals. The spreadsheet further revealed that there was a "medium" chance that both BlackRock and Google would participate in the funding round. It also indicated that both firms were conducting due diligence on FTX before its collapse on November 11. Bankman Fried, who is defending himself against fraud and conspiracy charges, is accused of defrauding customers by misusing customer funds for loans to insiders, political donations, venture investments, and real estate purchases. He is also accused of misleading FTX's investors, which has resulted in an SEC lawsuit. The spreadsheet listed other potential investors, including NEA, Qatar Investment Authority, Temasek, and Standard Crypto, with varying probabilities of participation in the funding round. Notably, BlackRock had previously invested $24 million in FTX prior to its downfall, as confirmed by CEO Larry Fink. However, it is unclear if Google ever directly invested in the exchange. The revelations from the trial shed light on FTX's attempts to secure investment from major players in the financial and tech industries, while also highlighting the legal challenges faced by Bankman Fried. As the trial continues, further details about the alleged fraud and misconduct at FTX are expected to emerge, providing a clearer picture of the extent of the exchange's downfall.