An executive from Paradigm, an asset management firm, tweeted on Tuesday it had felt “deep regret” for investing in FTX and its disgraced chief executive Sam Bankman-Fried following the exchange’s collapse.
We are shocked by the revelations about FTX, Alameda, and SBF.
— Matt Huang (@matthuang) November 15, 2022
Matt Huang, co-founder and managing partner for Paradigm, a San Francisco-based venture capital firm, tweeted at the time:
“We feel deep regret for having invested in a founder and company who ultimately did not align with crypto’s values and who have done enormous damage to the ecosystem.”
Facts are still coming to light, and there will be many lessons to learn. We feel deep regret for having invested in a founder and company who ultimately did not align with crypto’s values and who have done enormous damage to the ecosystem.
— Matt Huang (@matthuang) November 15, 2022
Paradigm’s managed assets totalled roughly $13.2 billion USD, according to reports in April. It also contained FTX and FTX.US in its investment portfolio, with investments around $278 million.
Paradigm’s equity investment in FTX constituted a small part of our total assets and has now been written down to $0. 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.
— Matt Huang (@matthuang) November 15, 2022
Huang also stated the total equity investments in FTX “constituted a small part of our total assets” and had been “written down to $0.”
He added: “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.”
The news comes after Sequoia Capital was also forced to write off its investments in FTX, citing a total loss of $213.5 million. FTX’s liquidity collapse “created a solvency risk” with “limited” risk exposure, the company announced in a recent letter responding to the aftermath of the insolvency.
