Media start-up Semafor raises $19 million to buy out Sam Bankman-Fried’s investment

Media start-up Semafor raises $19 million to buy out Sam Bankman-Fried's investment
Sam Bankman-Fried, the founder and former CEO of crypto currency exchange FTX, is escorted out of the Magistrate Court building in Nassau, Bahamas December 21, 2022. REUTERS/Marco Bello/

By Niket Nishant in Bengaluru

(Reuters) – Semafor said on Wednesday it has raised $19 million from investors including Yahoo co-founder Jerry Yang and KKR & Co co-founder Henry Kravis to replace Sam Bankman-Fried’s investment in the media start-up.

Semafor had been looking to buy out Bankman-Fried’s investment for months, after he was charged with fraud following the bankruptcy of cryptocurrency exchange FTX in November.

Last year, investigative news outlet ProPublica also decided to return $1.6 million it received from Bankman-Fried’s family foundation.

Founded by former Bloomberg Media Chief Executive Officer Justin Smith and New York Times media columnist Ben Smith, Semafor was launched in October. It has raised a total of $34 million so far.