Sequoia Capital, Paradigm, Thoma Bravo accused of promoting FTX's legitimacy (report)

Sequoia Capital, Paradigm, Thoma Bravo accused of promoting FTX's legitimacy (report)

leading risk capital companies such as Sequoia Capital, Thoma Bravo and Paradigm were reportedly charged because they gave the bankruptcy cryptocurrency exchange FTX a "touch of legitimacy".

Sam Bankman-Fried, who is accused of committing several crimes such as fraud and money laundering, received a summons as part of the procedure against the organizations he found and must present a number of documents on February 17. His father - Joseph Bankman - and the former bosses of Alameda Research - Caroline Ellison and Gary Wang - will do this a day earlier.

The FTX drama continues

according to Bloomberg Cover Sequoia Capital and the other private equity companies were accused in a lawsuit in one To have made marketing campaign popular in 2021. Remember that the crypto platform collapsed in November last year, which caused investor losses in billions in billions and massive reputation damage in the area of digital assets.

"As a result of the considerable investments of the defendants in the FTX units, everyone was suggested to use their professional reputation and their opportunities for media work in order to present FTX as a trustworthy and legitimate crypto exchange," says the complaint.

Sequoia Capital, Thoma Bravo and Paradigm were among the numerous companies that, due to their commitment to the bankrupt trading, separated from a considerable amount of means. Sequoia lost over $ 200 million while his team said that not all investments were successful:

"We take risks. Some systems are surprising upwards, others down."

Despite the financial loss, Sequoia Preserver-Spaces = "True"> His bad experience with FTX has not negatively affected his fund.

Paradigm-a crypto and web3-focused risk capital company- lost more than $ 270 million of the platform. Co-founder Matt Huang called He is "shocked" by the event and adds that it will cause companies to make further research before they assign funds for projects.

Thoma Bravo, based in the USA, separated from over $ 100 million.

SBF visits the court

Another report unveiled that the former CEO will go to court on February 17, to go to court on February 17, as part of the necessary documents against his trading center to be presented. He currently lives in his parents' house after a New York federal judge has released him under a deposit of $ 250 million

SBF faces several criminal allegations, including referral fraud and money laundering. He could spend his life behind bars if he is convicted during the trial in October

his father-Joseph Bankman, the former technical director of FTX-Nishad Singh, and the former bosses of Alameda Research-Caroline Ellison and Gary Wang-will present a number of documents tomorrow (February 16).

In contrast to SBF, Ellison and Wang , which finally led to the crash of ftx.

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