200 million dollars vanished! Sequoia Capital wrote down its FTX assets to 0, and BlackRock and SoftBank also stepped on the thunder

A direct write-down by Sequoia may indicate that the company has lost faith in FTX, believing that there is no other clear path to recoup its investment in FTX.

The liquidity crisis caused by FTX, the “money in the currency circle”, continued to ferment, and its exposed deep financial black hole exacerbated the “death vortex”, which discouraged Binance , which was originally willing to give money in the snow, and investors who had stepped on FTX had no choice but to help. “Acknowledging losses” includes Sequoia Capital, a well-known investment institution.

Sequoia Capital said in an email on Wednesday that it had written down the value of its FTX investment to zero. Sequoia told investors that it spent about $214 million in FTX’s international and U.S. operations last year. In addition, the investment includes stakes in FTX.com and FTX.us, according to a company spokesperson.

The company wrote in the email:

We are in the business of taking risks…some investments will be pleasant surprises and some will be huge disappointments.

Still, Sequoia has tried to reassure investors, saying that even among the funds with the most exposure to FTX, FTX accounts for less than 3% of committed funds. And the company also highlighted that the fund has realized and unrealized gains of approximately $7.5 billion.

According to media analysis, the reason why Sequoia Capital directly chose to write down can to a certain extent show that the company has lost confidence in FTX and believes that there is no other clear way to recover its investment in FTX.

As Multicoin Capital, a smaller venture capital fund that has invested in FTX, told investors on Wednesday that 10% of the company’s assets under management would be affected:

Unfortunately, we are not able to withdraw all invested assets from FTX.

In addition to the above-mentioned companies, BlackRock, Tiger Global, SoftBank Group, Ontario Teachers’ Retirement Fund, which ranks among the top five pension funds in Canada, Tom Brady, a well-known American football player, and Gisele Bündchen , a supermodel , are among the clients of FTX. On the list, this time may also suffer losses.

According to data agency PitchBook, Tiger Global and Ontario Teachers’ Retirement Fund first invested in FTX in December 2019 in a funding round that valued FTX at $8 billion at the time. After that, in October 2021, the two funds invested again, helping FTX’s valuation to reach $25 billion, and then increased again in January 2022.

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