FTX raised equity capital before its collapse from Robert Kraft ‘s Kraft Group and entertainment giant Endeavor Group Holdings Inc., among other newly-identified backers who now face the loss of their investments in the once-highflying exchange, the Wall Street Journal reproted. The crypto firm’s chapter 11 administrators disclosed a new roster of its financial backers that listed affiliates of Kraft Group and entertainment giant Endeavor as holding common and preferred stock. FTX also disclosed that it raised capital from affiliates of investment offices including Daniel Och’s Willoughby Capital LLC and Blue Pool Capital, a Hong-Kong office backed by Alibaba Group co-founder Joseph Tsai, according to the shareholder list, filed in bankruptcy court on Tuesday. Marquee investors from the U.S. and around the world poured roughly $1.8 billion into FTX with few strings attached, valuing the firm at $32 billion at its peak. Equity holders are likely to be wiped out now that FTX has filed chapter 11. Customers are facing big losses and generally must be paid ahead of stockholders.
