2 years ago
It’s a “tricky case,” arsenic it is chartless what work these firms really had to “completely abstracted investors,” suggests a crypto lawyer.
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Users of bankrupt crypto speech FTX person reportedly taken purpose astatine financiers who promoted the level suggesting their efforts added an “air of legitimacy” to the now-defunct exchange, a lawsuit labeled arsenic "tricky" by a crypto lawyer.
A Feb. 15 Bloomberg report revealed a class-action suit filed Feb. 14 by FTX investors against task superior steadfast Sequoia Capital and backstage equity firms Thoma Bravo and Paradigm.
The firms were accused by the investors of touting “their ain investments” of hundreds of millions of dollars successful FTX.
It was alleged the firms were involved successful a promotional selling run successful 2021 which the investors alleged added an “air of legitimacy” to the disgraced crypto exchange.
The 3 firms were each investors successful FTX’s $900 cardinal Series B circular successful July 2021, the largest rise successful crypto history, successful which assorted partners of the firms spoke highly of erstwhile FTX CEO, Sam Bankman-Fried.
In a statement following the backing announcement successful July 2021, Paradigm’s co-founder Matt Huang called Bankman-Fried a “special” laminitis who is “stunningly ambitious.”
Speaking to Cointelegraph, crypto lawyer Liam Hennessy, spouse astatine Australian instrumentality steadfast Gadens, stated that it is simply a “tricky case,” and helium questions “what work Sequoia and others” person to “completely abstracted investors.”
He added that contempt the information Sequoia’s owed diligence wasn’t great, it doesn’t marque it “liable to others.”
Hennessy believed it could beryllium a lawsuit of “buyer beware” – arsenic determination is nary proposition that Sequoia wasn’t “playing wrong the regulatory rules.”
Cointelegraph contacted Sequoia Capital, Thoma Bravo and Paradigm for remark but did not person an contiguous response.
Related: Charity tied to erstwhile FTX exec made $150M from insider woody connected FTT tokens: Report
A abstracted Feb. 15 Bloomberg report revealed that successful the aforesaid tribunal filing Sam Bankman-Fried and his father, on with erstwhile FTX and Alameda Research executives Caroline Ellison, Nishad Singh and Gary Wang were each issued with a subpoena, an bid for a idiosyncratic to be court, to supply further evidence.
It was stated that Joseph Bankman, Ellison, Wang, and Singh are owed to be tribunal connected Feb. 16 while Sam Bankman-Fried is expected to be connected Feb. 17.
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