FTX’s Bankman-Fried Quietly Invested More than $500 Million in Sequoia and Other VCs

FTX founder Sam Bankman-Fried was not only a tireless fundraiser from undertaking capital companies which includes Paradigm and Sequoia Money, but also quietly built investments in these same resources, in accordance to two persons acquainted with the make any difference. The unconventional moves show how entangled Silicon Valley VC firms are in Bankman-Fried’s collapsing crypto empire, which has now forced these companies to mark down the value of their FTX stakes—previously worth hundreds of millions of dollars—to zero.

Bankman-Fried’s trading firm, Alameda Study, which experienced shut ties with his crypto exchange FTX and which shut down this week, invested at the very least $20 million in Paradigm previous calendar year, according to two people today with direct understanding of the subject. Independently, Alameda Analysis and FTX Ventures, a enterprise arm backed by Bankman-Fried’s personal money, committed hundreds of thousands and thousands of bucks to Sequoia Funds, Altimeter Funds Administration and Multicoin Funds, according to four people today familiar with the make any difference. Funds linked to Bankman-Fried also backed K5 Global, an advisory and investment fund operate by Michael Kives, a near advisor to Bankman-Fried.