• FTX purchased a majority stake in trading platform Blockfolio for $84 million using its own token, FTT.
• FTT is at the center of the downfall of the company founded by Sam Bankman-Fried.
• Bankman-Fried now faces criminal charges in the U.S.

Cryptocurrency exchange FTX made headlines recently when it was revealed that sister firm Alameda Research’s balance sheet was full of its own token, FTT. This sparked a series of events that led to the downfall of the company founded by Sam Bankman-Fried, and now Bankman-Fried faces criminal charges in the U.S.

However, FTX had previously made another big move that has gone relatively unnoticed – the purchase of a majority stake in trading platform Blockfolio. According to Bloomberg, FTX had completed the deal to acquire a 52% stake in the platform with the amount mostly paid in FTT. The total cost of the acquisition was $84 million.

The deal highlights the ambitious and risky moves FTX was making prior to the financial scandal that eventually led to the company’s downfall. FTX was using its own token, FTT, to fund the purchase, which represented 94% of the total cost. This strategy was seen as a way for the company to expand its influence and reach in the cryptocurrency market.

Unfortunately, this strategy backfired and FTX has now become mired in controversy. Bankman-Fried is facing criminal charges for wire fraud, conspiracy to commit money laundering and violating campaign finance laws. Meanwhile, the SEC has classified FTT as a security, meaning that investors must register with the Commission before trading it.

Despite this, FTX’s acquisition of Blockfolio still stands. The trading platform will continue to be operated as a separate entity, but it is likely that FTX will still be able to benefit from it in some way. This could be through a range of services or features that are integrated between the two platforms, or even through a higher level of brand recognition.

Ultimately, the story of FTX and its acquisition of Blockfolio is a cautionary tale of the risks of investing in the cryptocurrency market. It serves as a reminder of the importance of researching a company and its token before investing, as well as understanding the potential consequences of such investments.