Some challenged whether or not the multi-billion dollar capital firm did enough due diligence on FTX before investment.
The co-founder of asset management firm Paradigm says they feel “deep regret” for having invested in FTX amid recent revelations involving FTX, Alameda analysis, and SAM Bankman-Fried.
In a Twitter post on Nov. 15, Matt Huang, co-founder and managing partner of Paradigm aforesaid the firm is “shocked” by the revelations close the 2 corporations and their founder, adding:
“We feel deep regret for having invested while a founder and company who ultimately failed to align with crypto’s values and who have done monumental damage to the scheme.”
Paradigm may be a crypto and Web3-focused capital firm based mostly in metropolis. In April reports urged the firm’s assets underneath management to destroy more or less $13.2 billion.
In Nov. 2021, the firm proclaimed a $2.5 billion New Venture Fund, that dethroned Andreesen Horowitz’s (a16z) because the largest venture fund in crypto.
The firm’s web site presently lists FTX and FTX.US in its portfolio. Reports recommend its investment within the exchange is round the $278 million mark.
Huang affirmed that Paradigm’s equity investment in FTX solely grooved “a little a part of our total assets,” adding that it’s currently written its FTX investment right down to $0.
He conjointly assured that the firm has ne’er listed on FTX or has ever invested with in tokens joined to the exchange, as well as FTX Token FTT tickers down $1.80, bodily fluid token (SRM), Maps.ME Token (MAPS), or the Oxygen Protocol token (OXY).
“We never listed on FTX and failed to have any assets on the exchange. we’ve ne’er been investors in connected tokens like FTT, SRM, MAPS, or OXY.”
Since posting the tweet, many Twitter users challenged whether or not the firm did enough due diligence before investment in FTX.
Speaking to Cointelegraph, CK Zheng, co-founder of digital assets hedge fund ZX square Capital mirrored that in discernment, several capital companies might not have done the right due diligence on FTX and its government team, commenting:
“They don’t have an awfully smart governance method, and don’t have a board. It’s essentially a one-woman show.”
“I’m sure once a young company starts to create a corporation with subtle technology […] I will see however things will go unhealthy quickly if they do not have an honest understanding of technology married with finance.”
“Obviously, they’re good on one side, however running a $32 billion company is extremely different from, you know, once you manage a small company,” he added.
Investors to possess recently marked down their FTX investments embody cypress Capital, that wrote off its roughly $210 million investment on Nov. 10, Ontario Teachers’ retirement savings account, that invested with $95 million within the crypto exchange, and SoftBank group corporation., that is anticipated to put in writing down an almost $100 million investment.
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