{"id":74120,"date":"2023-02-15T12:04:42","date_gmt":"2023-02-15T10:04:42","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=74120"},"modified":"2025-09-09T18:15:57","modified_gmt":"2025-09-09T15:15:57","slug":"ftx-investors-sue-sequoia-capital-thoma-bravo-and-paradigm","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/ftx-investors-sue-sequoia-capital-thoma-bravo-and-paradigm\/","title":{"rendered":"FTX Investors sue Sequoia Capital, Thoma Bravo and Paradigm"},"content":{"rendered":"

Involving venture and private investment firms, including Sequoia Capital, Thoma Bravo and Paradigm, a lawsuit has been filed against the bankrupted cryptocurrency exchange FTX<\/a> over the creation of legitimacy. Bloomberg<\/a> reports.<\/p>\n

According to \u0441\u0443\u0434\u0435\u0431\u043d\u044b\u043c \u0434\u043e\u043a\u0443\u043c\u0435\u043d\u0442\u0430\u043c<\/a>, in 2021 the firms promoted their own investments of hundreds of millions of dollars in FTX-related entities, creating around the latter an aura of legitimacy.<\/p>\n

The complaint notes the defendants’ statements about thorough checks of FTX’s operations and assurances of the exchange’s safety.<\/p>\n

Sequoia Capital acknowledged loss of $213.5 million<\/a> on its investments in FTX. Thoma Bravo invested more than $100 million in the exchange, and Paradigm more than $250 million. The latter later issued a “deep regret”<\/a> over that funding.<\/p>\n

\n

“As a result of substantial investments by the defendants in the FTX entities, each of them had an interest in using their professional reputation and media access to portray FTX as a reliable and legitimate crypto exchange,” the complaint states.<\/p>\n<\/blockquote>\n

Investors also alleged various violations of law, including misrepresentation, false advertising and civil conspiracy.<\/p>\n

The companies named in the suit have not yet publicly commented on the matter.<\/p>\n

As Crypto Fund Research estimates, the aggregate losses of crypto funds from the FTX bankruptcy could reach up to $5 billion<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

A lawsuit has been filed against venture and private investment firms, including Sequoia Capital, Thoma Bravo and Paradigm, over the creation of legitimacy for the FTX exchange.<\/p>\n","protected":false},"author":1,"featured_media":74121,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1162,1236,52,1608,2180],"class_list":["post-74120","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-court-cases","tag-ftx","tag-investments","tag-paradigm","tag-sequoia-capital"],"aioseo_notices":[],"amp_enabled":true,"views":"28","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/74120","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=74120"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/74120\/revisions"}],"predecessor-version":[{"id":74122,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/74120\/revisions\/74122"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/74121"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=74120"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=74120"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=74120"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}