Also Affected, Sequoia Capital Cancels Investment On Sam Bankman-Fried's Crypto Exchange

The leading capital venture company from the US, Sequoia Capital, has reportedly canceled its investment plan against the crypto exchange in danger of going bankrupt, FTX. This effort is the impact of the recent state of the shocked FTX crypto exchange.

Under current risk situations, Sequoia Capital has announced the cancellation of its $213.5 million investment at FTX Global Growth Fund III, according to a recent report.

Recently, Sequoia Capital announced the cancellation through its official Twitter social media post, @sequoia on November 10. The statement said liquidity situation created the risk of solvability for FTX. This full nature and level of risk is unknown. Based on his understanding of the current situation, Sequoia reduced its investment to zero.

Launching Coincu, Sequoia Capital has limited exposure to FTX, but has investments in FTX.com and FTX.US in GGFIII. FTX is not among the top 10 funds, and a cost base of 150 million US dollars represents less than 3 percent of the capital of the committed funds. The loss of 150 million US dollars is offset by realized and has not been realized by 7.5 billion US dollars, so the funds perform well.

Separately, the SCGE Fund invested 63.5 million US dollars in FTX.com and FTX.US. This injection of funds represents less than 1 percent of the SCGE Fund portfolio of September 30, 2022, at a reasonable value. The company's total funds have invested FTX and FTX.US worth US $ 213.5 million.

In addition, he claims to have carried out a rigorous due diligence while investing in FTX. FTX generated revenues of around $1 billion and more than $250 million in operating revenue in 2021, its investment year, announced in August 2022. The current situation is growing rapidly. If there is new information, Sequoia Capital will update further.

As previously updated in Coincu News articles, FTX investors are very concerned about their investment in FTX. FTX is priced at $32 billion in its latest funding round (Series C) in January this year. The company includes Sequoia, BlackRock, Tiger Global, Paradigm, Thoma Bravo, SoftBank, Ribbit Capital, Insight Partners, Lightspeed Venture Partners, Altimeter Capital, Coinbase Ventures, Sino Global, Bond and Iconiq Growth among its long lists of supporters.

The current situation is tense as Binance has rejected the acquisition with FTX due to its inability to control financial vulnerabilities. Sam Bankman-Fried's company is in danger of filing bankruptcy and facing investigations by US law enforcement agencies including from the US Securities and Exchange Commission (SEC) and the US Department of Justice (DOJ).