- After writing off his entire investment in the crypto exchange FTX (FTT/USD), Sequoia Capital apologized to its fund investors for the lost $150 million.
- Last week, SoftBank said it invested less than $100 million and kept the investment close to cost, rather than increasing the valuation and posting a profit.
- SoftBank will likely write them off Holding in the December quarter.
- The venture capital firm also told fund investors that it will improve its due diligence process for future investments and that it believes FTX misled them based on its recent bankruptcy filing.
- Sequoia was one of the venture investors who invested around $2 billion in FTX amid last year’s crypto investment boom.
- Sequoia put the bulk of its money into a Series B funding round for FTX in July 2021, when investor enthusiasm for cryptocurrency startups was at an all-time high.
- Bahamas-based FTX and its U.S. arm used two smaller accounting firms to sign off on their 2021 financial statements earlier this year, according to documents viewed by the Wall Street Journal and the executive hired to conduct FTX filing for bankruptcy has raised “significant concerns” about the quality of FTX’s audited statements.
- Photo via Shutterstock
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