insiders earned $22 billion on the fall of the SPAC market – Kommersant
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The Wall Street Journal (WSJ) analyzed data from more than 460 companies that went public through mergers with specialized companies for targeted mergers and acquisitions (SPAC), and found 232 cases of insider selling of shares.
In total, insiders and early investors made a profit of $22 billion by managing to withdraw their funds just before the shares of these companies plummeted in price. And among the top insider beneficiaries of such sales are British billionaire Richard Branson and Trevor Milton, founder of US electric truck maker Tesla.
The WSJ analyzed the data that companies provided to the US Securities and Exchange Commission (SEC) before May 18 this year. It turned out that early investors withdrew more than $500 million from 12 companies just before they made transactions with SPAC. In 80% of cases, insiders withdrew less than $100 million. On average, the amount of withdrawn funds was $22 million per company.
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