SA国际传媒

New York-based news startup听听is looking to buy back听Sam 鈥檚 stake in the company as the disgraced听听co-founder faces fraud charges, according to a听.

The company raised nearly $25 million before its launch in October, with Bankman-Fried鈥檚 stake being about $10 million, according to the report.

The company is looking to buy out Bankman-Fried鈥檚 ownership as it simultaneously raises new money, per the report. The startup expects to put the money in a separate account until it receives guidance from authorities on how to return the investment, Semafor co-founder and CEO听听told The Times.

Cutting ties

Semafor is one of only hundreds of startups Bankman-Fried and his affiliates invested in over the last few years. Many of those firms are now looking to get out of their entanglement with him and his now-bankrupt crypto exchange, FTX.

Media startups seem especially interested in cutting any ties with Bankman-Fried. Last month,听听听it would return the initial $1.6 million it received in what was supposed to be a three-year, $5 million grant, from Bankman-Fried鈥檚 and his family鈥檚 Building a Stronger Future foundation. The non-profit newsroom said it would sever its relationship with the foundation.

Bankman-Fried is charged with eight criminal counts, including allegations of wire fraud and conspiracy to commit money laundering. He was released from custody on $250 million bail last month.

Further reading:

• Funding To Web3 Startups Plummets 74% in Q4
• FTX Collapse Will Reverberate Throughout The VC World For A Long Time
• Mergers & Money: FTX-Induced Crypto Contagion Likely Only Starting
• Crypto Exchange Kraken Cuts Workforce; U.S. Pushing More Industry Regulation
• How VCs Invest In Crypto Will Be Changed By FTX鈥檚 Spectacular Fall
• Silvergate Capital Lays Off 40% Of Staff As FTX-Induced Contagion Strikes Again

Illustration: Dom Guzman