FTX investor sues Sequoia Capital, Thoma Bravo, Paradigm

02/15 04:08

According to Bloomberg, venture capital and private equity firms including Sequoia Capital, Thoma Bravo and Paradigm were accused in a lawsuit of promoting the legitimacy of FTX, the cryptocurrency exchange that collapsed causing billions of dollars in losses. The class-action suit filed Tuesday on behalf of investors alleges that the firms participated in a promotional marketing campaign in 2021 to tout their own investments of hundreds of millions of dollars in FTX entities. That added an “air of legitimacy” to the enterprise that ended up going bankrupt in November and whose co-founder Sam Bankman-Fried now faces criminal charges, the investors allege. Investors alleged various violations of state and federal law, including misrepresentation, false advertising and civil conspiracy.
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