FTX was in the midst of being acquired by the world’s largest exchange Binance until a day back. However, a recent report suggested that Binance was likely to step back from buying out the beleaguered company. Alongside, FTX’s founder, Sam Bankman-Fried, recently took down a series of tweets that assured that all the funds on the exchange were safe. Thus, investors have been steering away from FTX, given its current state.
The Sequoia Capital team just announced that they were completely writing down the value of their holdings in FTX. In a letter to investors, Sequoia attributed FTX’s “liquidity crunch” and “solvency risk” as reasons for their action. The VC firm put in roughly $214 million last year in FTX’s international and US businesses.Sequoia Capital marks down its FTX stake to $0