FTX Bankruptcy Filing Reveals SBF’s Connection With VC Firms
FTX exchange, a popular cryptocurrency exchange which was widely used by traders to buy and sell coins and tokens filed for bankruptcy on 11 November. Since then the investigation team has been on their toes to dig out all the confidential information related to FTX and its founder Sam Bankman-Fried. While the team is trying to know in depth information everyday there is new information that is popping out.
In the early hours today, the bankruptcy filing revealed the names of FTX shareholders including football star Tom Brandy and other well-known celebrities along with a few popular firms like Coinbase. Now the latest updates claim that FTX founder and former CEO, Sam Bankman-Fried had invested nearly 20 million USD in Paradigm, a venture capital firm. Furthermore, it’s also been reported that Paradigm later bought FTX shares.
It was in 2021 that SBF invested in a fund that was managed by Paradigm and later the same $2.5bn Paradigm One fund invested in FTX and FTX US exchanges. Earlier, Paradigm One was one of the largest crypto venture capital. Paradigm, which was created in 2018 by ex-Sequoia Capital partner Matt Huang and Coinbase co-founder Fred Ehrsam, claimed that SBF was given the same respect as others in its fund.
Paradigm Regrets Its FTX Investments
On the other hand, as per the reports, SBF had also invested $5mn in a fund that was introduced by UVM, a Singaporean bank and Signum Capital. These firms are the first of few investments that Sam Bankman-Fried had invested.
Paradigm was one of the main investors in FTX where the firm aided FTX’s internal venture team to run its Series B funding in July 2021. Huang had earlier claimed that SBF was among the special founders whose vision was ambitiously focused towards Crypto future.
However, after FTX filed for bankruptcy, Huang tweeted that he was deeply feeling regret for his investments in a company and a founder whose values were not in vision of crypto values.