Insiders, including CEO Ivan Soto-Wright, allegedly cashed out $150 million in shares, marking a significant payout that didn’t return to the company’s coffers
Crypto’s peak saw some major insiders make a substantial play. MoonPay, a cryptocurrency payments startup, reported a massive $555 million fundraising round in November 2021, amid the frenzy of Bitcoin reaching a record high of nearly $69,000.
According to The Information, insiders cashed out $150 million in shares, with CEO Ivan Soto-Wright among the major sellers.
For context, MoonPay is a cryptocurrency infrastructure firm, offering a payment gateway for crypto businesses. Its platform facilitates digital asset transactions, making it easy for users to purchase cryptocurrencies like Bitcoin. In 2021, the firm garnered significant attention for its non-fungible token (NFT) “concierge” service, praised by celebrities like Jimmy Fallon and Paris Hilton.
The fundraising round saw a hefty $3.4 billion valuation for MoonPay, led by big-name investors.
Of the total raised, $405 million came from selling shares to investors, but the remaining $150 million came from insiders cashing out their shares in a secondary transaction, as reported by The Information. This means that a substantial amount of the funds raised did not go back into the company.
In an interview with CoinDesk, MoonPay’s co-founder and CEO Ivan Soto-Wright had hinted that the company’s intent was to leverage the funding to broaden its workforce and increase its geographical reach among other things.
However, Soto-Wright reportedly used some of his windfall to purchase a $38 million mansion in Miami, hinting at the luxurious lifestyle afforded by the crypto boom.
Source: https://u.today/moonpay-executives-collected-150-million-during-crypto-market-peak