FTX investor sued Sequoia Capital, Thoma Bravo and Paradigm

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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 on behalf of investors on Tuesday claims that the firms engaged in a promotional marketing campaign in 2021 to tout their own hundreds of millions of dollars in FTX entities. According to the investors, this provided a “air of legitimacy” to the company, which went bankrupt in November and whose co-founder Sam Bankman-Fried is now facing criminal charges.

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FTX investor sued Sequoia Capital, Thoma Bravo and Paradigm

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 on behalf of investors on Tuesday claims that the firms engaged in a promotional marketing campaign in 2021 to tout their own hundreds of millions of dollars in FTX entities. According to the investors, this provided a “air of legitimacy” to the company, which went bankrupt in November and whose co-founder Sam Bankman-Fried is now facing criminal charges.

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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