Tag: FTX

Sequoia partner says investing in FTX was the right move: Report

American venture capitalist Alfred Lin, a partner at Sequoia Capital, stood up for the firm’s multimillion-dollar investment in the now-bankrupt crypto exchange FTX.  Speaking at Bloomberg’s Tech Summit, Lin said if he were tasked with evaluating FTX again for the first time, Sequoia would likely make the same investment decision. “I looked at the work we did in 15 different ways. […] We probably would have made the investment again,” Lin reportedly stated. Sequoia Capital has about $85 billion of assets under management, with investments in major technology companies and…

K5 Global Sued to Court by FTX, May Pay $700 Million

The suit was filed at the United States Bankruptcy Court for the District of Delaware. Bankrupt FTX exchange has filed a lawsuit against K5 Global – an investment firm owned by a former aide to Hillary Clinton. According to a Reuters report, the suit was filed at the United States Bankruptcy Court for the District of Delaware. It contains 16 counts against the defendants and seeks to recover about $700 million from them. According to the filing, the defendants include K5 Global, Mount Olympus Capital, SGN Albany Capital, their affiliates,…

FTX seeks to claw $700M from Bankman Fried friends and affiliated funds

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FTX has filed a lawsuit in the United States Bankruptcy Court for the District of Delaware against some of the investment firms it had ties to before its collapse. The suit, filed June 22, contained 16 counts and seeks over $700 million from the defendants. The lawsuit filing named K5 Global – an incubator and investment company, Mount Olympus Capital and SGN Albany Capital, as well as affiliated entities and K5 Global co-owners Michael Kives and Bryan Baum, as defendants. Kives is a former agent for the CAA talent agency and…

FTX bankruptcy will be ‘very expensive’ but there’s a reason: Auditor

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Fees charged by the lawyers and the restructuring team working on the bankrupt crypto exchange FTX have topped $200 million in just over seven months, but an independent auditor argues it makes sense, given the mammoth task. On June 20 the court-appointed fee examiner, Katherine Stadler, filed a 47-page report on the fees charged by the law firms in the roughly three months following FTX’s Nov. 11 bankruptcy and concluded they were not “wholly unreasonable in the moment.” She remarked on the “largely unregulated financial system” in which FTX operates,…

FTX Incurred More than $121M in Legal and Advisory Fees between February 1 and April 30

SBF is expected to return for a court hearing later this year, when all the investigations will be tabled for the judge to rule on the matter. The bankrupt cryptocurrency exchange FTX and its sister investment firm Alameda Research are nowhere near making the creditors whole again. With more than $8 billion missing from FTX and Alameda Research’s balance sheet according to John J. Ray III – the acting CEO – the court will not have a ride in the park dividing the remaining assets among hundreds of institutional investors…

FTX incurs over $120m in advisor fees as bankruptcy costs mount

FTX, the bankrupt crypto exchange, faces significant legal and advisory costs, with filings revealing that fees and expenses between February 1 and April 30 amounted to $121.8 million. The data, compiled by The Block Research, shows that FTX’s lawyers at Sullivan & Cromwell billed the exchange $37.6 million during that period, representing 30.9% of the total fees and expenses. Restructuring consultants at Alvarez and Marsel charged $37 million, while investment banking firm Jefferies billed the lowest amount at 0.6% of the total fees and expenses. The expenses include various items…

FTX founder Sam Bankman-Fried faces two criminal trials

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Criminal charges against FTX co-founder Sam Bankman-Fried have been split, with the former CEO now facing two separate trials for his alleged mismanagement of the crypto exchange. Bankman-Fried is facing a total of 13 charges relating to fraud, fraud conspiracy and bribery. A trial for all the charges was scheduled to begin on Oct. 2. Five of those charges will now be split off into a second trial on March 11, 2024, according to a June 15 ruling from United States District Court Judge Lewis Kaplan. The full text of Judge Kaplan’s…

Amy Wu, Former FTX Ventures Head, Joins Menlo Ventures

“At Menlo, Amy will make early-stage investments in technology-driven categories, including gaming, blockchain, and new consumer experiences made possible by tech shifts like generative AI. Her deep experience as both an investor and operator across a variety of consumer businesses will help her hit the ground running,” wrote Menlo Ventures partner Shawn Carolan in an announcement post. Source

US Prosecutors to Reduce Criminal Charges on FTX Founder SBF in October Trial

The DoJ prosecutors have eliminated five charges relating to fraud, conspiracy, and bribery initially levied against the disgraced FTX founder. In a court filing on Wednesday, June 14, prosecutors with the US Department of Justice (DoJ) told the district judge that they would be proceeding with eight charges in the trial levied against FTX founder Sam Bankman-Fried back in December 2022. The DoJ lawyers also cited a motion filed by SBF in the Bahamas wherein he argued that the 13 charges that he faced were not in the original indictment,…