FTX Ventures was a disorganized mess with missing financials, bankruptcy documents say

2022/11/18 04:31

Crypto exchange FTX established a $2 billion venture capital fund early this year, instantly becoming one of the crypto industry’s largest funds. The capital was said to fully come from the now-collapsed FTX and then-CEO Sam Bankman-Fried. New bankruptcy documents claim to show, however, that the inner workings of FTX Ventures, like much of the company, were an organizational nightmare.
FTX Ventures participated in funding rounds for some of the largest names in crypto, including Bored Ape Yacht Club creator Yuga Labs, USDC stablecoin issuer Circle and two different fundraises for the Aptos blockchain. The collapse of FTX following liquidity concerns, which led the firm to seek Chapter 11 bankruptcy protection, raised questions about those investments.
The FTX umbrella covered over 100 smaller legal entities, which complicates any story about the internal organization. According to paperwork filed on Thursday with the U.S. Bankruptcy Court for the District of Delaware, FTX Ventures, the operations that both invested in companies and accepted investments, spread its funds across Clifton Bay Investments LLC, FTX Ventures Ltd, Island Bay Ventures Inc and, “potentially, affiliated companies.”

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