Media: Sino Global files $67 million lawsuit against FTX

Sino Global Capital, a venture firm, filed suit against FTX on behalf of the Sino’s Liquid Value fund, seeking $67 million. It was created jointly with the former head of the collapsed exchange, Sam Bankman-Fried, in 2021. This is reported by CoinDesk.

The organization targeted high-net-worth individuals and planned to raise $200 million. In January 2022, the fund raised $90 million in financing, with FTX Trading acting as the lead investor.

Bankman-Fried was listed as an indirect investor alongside Alameda Research and its subsidiary Alameda Ventures. Sino Global initially noted that its direct interactions with the exchange were limited to storing ‘a seven-figure sum’.

Since 2023, Sino’s Liquid Value has not been registered with the U.S. Securities and Exchange Commission, but remains active under Cayman Islands jurisdiction.

Soon after the collapse of the trading platform, the venture firm published a statement in which it said it trusted FTX as a good player aiming to move the industry forward.

In mid-July Sino Global announced the appointment of former FTX chief operating officer Constance Wang as head of the games division.

Earlier, FTX and the crypto-lending platform Genesis reached a settlement in principle of the claims brought against the crypto exchange in its bankruptcy case.

In August, lawyers for the company presented a plan to relaunch the offshore exchange with access for users outside the United States. Later, FTX creditors criticised the proposal.