Goldman Sachs offered FTX cooperationLivia Green
According to sources FTin March, the head of Goldman Sachs, David Solomon, offered FTX CEO Sam Bankman-Fried help in organizing an IPO for the bitcoin exchange and dialogue with the CFTC.
In August 2021 FTX US acquired LedgerX, a regulated exchange specializing in cryptocurrency derivatives. At the same time, the head of the American division, Brett Harrison promised open access for clients to trade in crypto derivatives.
In March 2022, FTX filed with the CFTC to approve a leveraged sale of crypto derivatives to retail investors. In the document, the bitcoin exchange asked for permission to settle transactions directly, excluding intermediaries like Goldman Sachs.
According to the newspaper, Solomon and Bankman-Fried discussed the participation of Goldman Sachs in the organization of the next rounds of financing and a potential IPO. Sources said that the FTX CEO has not yet made a final decision on the second option.
In April 2021, the investment bank was among those who helped Coinbase go public.
Top managers allegedly raised the topic of possible cooperation in the field of market making in the cryptocurrency market in light of growing interest from Goldman Sachs. Solomon also expressed the institution’s interest in serving as a traditional banking service provider for FTX, the paper said.
Recall that in July 2021, Bankman-Fried did not rule out purchases of Goldman Sachs or CME Group in the future.
FTX raised $400M in January 2022 at a valuation of $32 billion.