Written by : Rajnish Kumar

Sequoia Capital Writes Off its Entire Investment in FTX

Companies and investors expect to suffer huge losses due to they are exposed to FTX which is facing massive liquidity problems.

A number of companies were affected by the huge cryptocurrency crash.

you shouldn't be expecting to recover the millions of dollars that they invested in FTX which is a well-known

cryptocurrency exchange that was estimated at $22 billion, and is currently at risk of going bankrupt.

Galaxy Digital, Sequoia and Robinhood revealed their involvement with both FTX and the trading platform Alameda Research,

which are both owned by Sam Bankman Fried, the official face of the cryptosphere.

Binance is owned by the Bankman-Fried competitor Changpeng Zhao, reversed course on the 10th of November,

pulling from a plan to rescue FTX from its liquidity crisis by buying the company.

Bankman-Fried who just days earlier was a billionaire, has admitted that FTX is running completely out of money.

The issue resulted from massive customer withdrawals on November 6 ,

when Binance announced that it would sell 500 million of FTT which is the cryptocurrency used by FTX after news reports on their financial stability. organization.

"We have seen roughly $5billion of withdrawals on Sunday, the largest by a large amount," Bankman-Fried said.

Venture capitalists made substantial investment in FTX in 2021, with Sequoia Capital providing capital in the amount of $420 million in the round,

which boosted the valuation of the exchange by $25 billion in the month of October 2021.

A consortium led by Paradigm committed $400 million in the month of January 2022, raising the valuation to an incredible $32 billion.

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