SoftBank is set to mark down its investment in troubled crypto exchange FTX to US$0, Barron’s reported, citing a source briefed on the matter.
In its earnings call last week, the Japanese investment giant said it has invested US$100 million in FTX. This represents roughly 0.4% of the cryptocurrency exchange’s total equity.
SoftBank invested in FTX earlier this year through Vision Fund 2, joining other backers such as Temasek, Lightspeed Venture Partners, Tiger Global, and Insight Partners.
This report comes after Sequoia sent an email to limited partners last week saying it marked its investment in FTX down to US$0. The VC firm backed FTX when the exchange logged roughly US$1 billion in revenue and over US$250 million in operating income.
See also: Why the FTX collapse is a big deal
FTX’s troubles followed reports saying the balance sheet of its sister company, Alameda Research, was mostly in FTT (FTX’s native token).
Editing by Jaclyn Tiu
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