Sequoia writes-off over $200M FTX investment as ‘worthless’

Venture superior steadfast Sequoia Capital revealed that its concern successful FTX is worthless, arsenic it is marking the concern down to zero, according to a Nov. 10 enactment sent to its constricted partners.

Here is the enactment we sent to our LPs successful GGFIII regarding FTX. pic.twitter.com/Cgp1Yxk1pz

— Sequoia Capital (@sequoia) November 10, 2022

Sequoia continued that its vulnerability to FTX is limited. According to the starring concern firm, its $150 cardinal concern successful the Global Growth Fund III is little than 3% of the fund. Apart from that, the nonaccomplishment has been offset by gains of $7.5 cardinal from the fund.

Additionally, the $63.5 cardinal invested into FTX and FTX US done the Sequoia Capital Global Equities Fund makes up little than 1% of the fund’s portfolio.

Sequoia’s invested successful FTX successful 2021 erstwhile the speech raised $900 cardinal astatine a valuation of $32 billion. The VC steadfast claimed it ran its owed diligence connected the speech earlier investing; astatine the time, FTX’s gross was astir $1 billion.

It added:

“We are successful the concern of taking risks. Some investments volition astonishment to the upside, and immoderate volition astonishment to the downside.”

The determination to markdown its concern to zero comes aft Binance refused to get the struggling firm, citing funds mismanagement and regulatory scrutiny.

Meanwhile, reports person revealed that Canada’s third-largest pension fund, The Ontario Teachers’ Pension Plan, was exposed to the struggling firm.

Sequoia is 1 of the astir salient task superior firms successful the crypto space. The steadfast has dedicated funds targeted astatine the manufacture and has invested successful respective crypto companies similar Fireblocks, Magic Eden, Filecoin, etc.

The station Sequoia writes-off implicit $200M FTX concern arsenic ‘worthless’ appeared archetypal connected CryptoSlate.