Last Updated on November 16, 2022 by Bitfinsider
In light of recent findings involving FTX, Alameda Research, and Sam Bankman-Fried, the co-founder of asset management company Paradigm said they have “deep regret” for having invested in the company.
Co-founder and managing partner of Paradigm, Matt Huang wrote on Twitter on November 16 that the company is “shocked” by the information regarding the two businesses and their founder.
San Francisco-based venture funding business Paradigm specializes in Web3 and cryptocurrency. According to data from April, the firm’s assets under control amounted to roughly $13.2 billion.
The company dethroned Andreesen Horowitz (a16z) as the largest venture fund in cryptocurrency in November 2021 when it unveiled a $2.5 billion New Venture Fund.
The firm’s website mentions FTX and FTX.US as part of its portfolio at the moment. According to reports, its stake in the exchange is close to $278 million.
Huang added that Paradigm has now written its FTX stake down to $0. He claimed that Paradigm’s stock interest in FTX only made up a “small part of our total assets.”
He guaranteed that the company had never traded on FTX or bought any of the tokens connected to the exchange, such as the FTX Token, Serum Token (SRM), Maps.ME Token (MAPS), or Oxygen Protocol Token (OXY). “We never traded on FTX and did not have any assets on the exchange. We have never been investors in related tokens such as FTT, SRM, MAPS, or OXY,” Huang said.
Following the remark, several Twitter users questioned if the company performed adequate due diligence before investing in FTX.
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