-
Sequoia Capital marked down to zero the value of its stake in the cryptocurrency exchange FTX — a stake that accounted for a minor percentage of Sequoia’s capital but as of last week likely represented among the most sizable unrealized gains in the venture firm’s 50-year history.
-
When Sequoia invested in the Series B round of FTX in July 2021, the high-flying, Bahamas-based outfit was valued at $18 billion. In January of this year, FTX raised $400 million in a Series C round that brought its total funding to $2 billion and its valuation to a breathtaking $32 billion.
-
Sequoia’s announcement comes as rival exchange Binance’s CEO Changpeng Zhao backed out of a proposed deal to purchase FTX, leaving the beleaguered firm at risk of a liquidity crisis.