Samreen Ahmad · · 1 min readFTX investors take on Sequoia, Thoma Bravo, Paradigm in new lawsuit
Investors at FTX have sued Sequoia Capital, Thoma Bravo, and Paradigm for allegedly misrepresenting the legitimacy of the now bankrupt cryptocurrency exchange, Bloomberg reported.
The lawsuit alleges that these VC firms participated in a hype campaign for FTX in 2021 as they had invested millions of dollars in the crypto exchange, which was once valued at US$32 billion last year.
In November 2022, Sequoia Capital said it will mark down its investment of US$214 million in FTX to zero.
“We are in the business of taking risks. Some investments will surprise to the upside and some will surprise to the downside,” the Silicon Valley-based VC firm had said back then.
In January, FTX said it had successfully recovered US$5 billion in liquid assets following its bankruptcy, comprising US$1.7 billion in cash, US$3.5 billion in liquid crypto, and US$300 million in liquid securities.
See also: Singaporeans feel ‘betrayed’ by Temasek-backed FTX
Editing by Lorenzo Kyle Subido
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