Following the sudden crash of FTX exchange, many firms tied to the platform also suffered, and many more who had invested in the platform concluded that their investments were the wrong move.
However, American venture capitalist, Alfred Lin, who is also a partner at Sequoia Capital, has stood by the decision.
Sequoia invested $213.5 million into the now-bankrupt exchange, but Lin said in a recent talk that the investment was the right move at the time.
More than that, he said that he would recommend it again, if he were asked to evaluate FTX for the first time.
“I looked at the work we did in 15 different ways,” said Lin.
"We probably would have made the investment again.”
His words indicate that there was nothing wrong with FTX or how it operated when the investment decision was made. At least according to the data that Sequoia had about the platform.
There were no suspicious activities or red flags of any kind based on what the company managed to gather.
Sequoia Capital holds around $85 billion in assets under management and invested in multiple major technology companies.
In addition to that, it also invested in a number of crypto businesses. It used two of its funds to invest in FTX and FTX US.
The Global Growth Fund III held a $150 million investment into the now-bankrupt crypto exchange, which represents around 3% of the fund’s total capital.
The other fund, Capital Global Equities Fund, invested 1% of its portfolio — around $63.5 million — into both FTX and FTX US.
After FTX crashed, the company sent a letter to its partner, calling its FTX investments “complete losses.”
However, the company noted that it is in the business of taking risks, saying that some investors will surprise to the upside and some to the
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