Sequoia Capital Expresses Regret for Investing in FTX

Published on:

Last Updated on November 23, 2022 by Bitfinsider

Sequoia Capital partners apologized to their investors during a conference call for their choice to invest in and FTX US, Bloomberg reported, citing people familiar with the event.

According to the article, Sequoia has invested a total of US$214 million in two projects via two funds.

According to insiders, Alfred Lin, who pushed the FTX transaction, crypto-focused partner Shaun Maguire, and global head Roelof Botha were the most prominent speakers at the virtual gathering.

Prior to investing, Sequoia clarified that it had studied FTX’s unaudited financial statements. One partner responded by suggesting that going ahead, Sequoia should encourage entrepreneurs to consult the Big Four accounting firms: Deloitte, Ernst & Young (EY), PricewaterhouseCoopers (PwC), and Klynveld Peat Marwick Goerdeler (KPMG).

Sequoia also reaffirmed its earlier assertions that it had performed exhaustive due diligence, going so far as to examine Alameda Research and FTX’s shared founder, Sam Bankman-Fried, through multiple financial statement reviews.

Reports indicate that Alameda is using FTX customer funds. This was not the case in May of this year, months before the meltdown, Sequoia was informed. The venture capital firm’s partners claimed they were mislead.

The development follows Sequoia’s valuation of its FTX holding at $0 earlier this month.

Hardware wallets are safe and secure devices that can be used offline. They keep your cryptocurrency offline, making it impossible for you to be hacked. To find out more on the leading hardware wallets, you may view our reviews here: Ledger & Trezor
Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.