FTX, one of the largest cryptocurrency exchanges in the world, quickly collapsed.
FTX, Alameda Research Trading Company, West Realm SeriesAnd the and 130 affiliated companies Filed for bankruptcy protection Late last week, just days after another cryptocurrency exchange withdrew from an agreement to acquire it and cited red flags raised during due diligence. The ailing company is reportedly facing possible government investigations.
Its founder, Sam Bankman Fried, on Friday stepped down as CEO, handing the reins to former Enron liquidator John J. Ray III. Bankman-Fried and the company have been accused of secretly funneling FTX clients’ funds to his trading firm, according to Reuters.
Here are some eCities and individuals potentially affected by the FTX collapse.
Sequoia Capital has “limited” exposure to FTXwhere one fund invested $150 million in FTX.com and FTX US and the other invested $63.5 million, to me A note the venture capital firm sent to limited partners and shared on Twitter Nov. 9.
“FTX is not in the top 10 of the fund, and the $150 million cost basis represents less than 3% of the fund’s committed capital,” Sequoia said of its investment in Global Growth Fund III. “The $150 million loss was offset by approximately $7.5 billion in realized and unrealized gains in the same fund, so the fund remains in good shape.”
The other FTX position is equivalent to “less than 1% of the SCGE fund portfolio 9/30/2022 (at fair value),” according to Sequoia Capital.
The venture capital firm said it had decided to “reduce our investment to $0.”
Softbank He has participated in FTX fundraising rounds in the past, including contributing to a Series C that brought in $400 million for the cryptocurrency exchange, to me Press release issued in late January.
market surveillance I reported on Friday that SoftBank CEO Yoshimitsu Goto said that a small investment, less than $100 million, the company awarded FTX. unnamed sources said Reuters And the bloomberg That SoftBank has plans to write it off is likely a complete loss.
Tom Brady and Gisele Bundchen
Tampa Bay Buccaneers Quarterback Tom Brady And his ex-wife, Gisele Bundchen, reached an agreement with FTX in June 2021 in which he became an ambassador and she became an advisor on environmental and social initiatives, FTX announced. In a press release in time.
They each received a stake in FTX as part of the partnership, in addition to the cryptocurrency, according to the release.
Because the stock market filed for bankruptcy, the stock shares in the company lost value.
Stephen Curry, point guard for Golden State Warriors, signed a “long-term partnership” with FTX in September last year. He became a global ambassador for FTX, a role aimed at “expanding the reach of the FTX brand and promoting the viability of cryptocurrency to new audiences,” to me A statement announcing the transaction.
For his ambassador’s agreement, FTX said at the time, Curry took a stake in the company. His foundation has also reportedly agreed to take part in some charitable efforts.
The number of FTX customers affected remains unclear at this time.
Recently submitted court documents to A US Bankruptcy Court By FTX attorneys they suggested more than 1 million creditors would be affected. There were 100,000 creditors—mostly customers—they knew, the company said, FOX Business Previously mentioned.
FTX’s native token, FTT, has seen its value drop sharply in recent days. The CEO of Binance, another cryptocurrency exchange, said on Sunday that it had done so Stop accepting FTT deposits, and others have written off the token.
FOX Business has reached out to Sequoia Capital and SoftBank for comment, as well as Carey’s rep. Brady’s representative declined to comment.
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