Tom Brady is not having a good week, and neither is anyone who is involved with now Bankrupt FTX and affiliated companies.
Just a week ago, SBF, Sam Bankman-Fried, the darling CEO, was headlining Crypto events, naming sports arenas, and testifying in front of congress to shape Crypto regulations, and had investors like Sequoia, SoftBank, BlackRock, and dozen other top VCs.
Mario has been up for 36 hours covering the breaking FTX story on his Twitter spaces with his team and Kim Dot Com and Elon Musk joining the discussion.
Paradigm, a crypto-focused venture fund that put $278 million into FTX, told its backers in a Wednesday letter that the investment was likely worthless.
Sequoia said in a statement that it valued its $213 million investment in FTX at $0.
Even the Whitehouse had a comment, and you can see what happened in this simple explanation by Coffeezilla.
The venture capital arm of the Ontario Teachers’ Pension Plan, which put $95 million into FTX, said in a statement, “Not all of the investments in this early-stage asset class perform to expectations.”
In the bankruptcy filing, FTX indicates it has more than 100,000 creditors, assets in the range of $10 billion to $50 billion, and liabilities in the range of $10 billion to $50 billion. By comparison, Lehman had more than $600 billion in assets.
The exchange’s founder, once seen as a golden genius in the world of digital assets, is under investigation, and his company filed for bankruptcy.
There are also some interesting coincidences regarding Sams's and Caroline's families, who are very prominent lawyers, educators, and Democratic donors.
“Sam ran the shop, Sam ran everything, we all trusted him, and believed him. It was a dictatorship, in a good way, a benevolent dictatorship.”
According to a rumor, three former FTX executives and Alameda Research CEO Caroline Ellison are looking for ways to flee to Dubai. While the plan was made assuming that the United States “doesn't have any extradition treaties” with the UAE, the nations signed a mutual legal assistance treaty (MLAT) back on Feb. 24, 2022, to work against criminals.
This might be the worst day for Crypto since 2017, but the talent in this space and the drive are nothing like we have ever seen.