Paradigm Co-founder Feel “Deep Regret” for Investing in SBF and FTX

Paradigm Co-founder Feel “Deep Regret” for Investing in SBF and FTX.

Co-Founder of Paradigm, Matt Huang, has expressed regret over having invested in FTX amid recent revelations involving FTX, Alameda Research, and Sam Bankman-Fried, but he notes that only a small part of  the company’s total assets are in FTX.

The firm says never traded on FTX

There are currently two exchanges listed on its website: FTX and FTX. US, and reports suggest that the firm invested around $278 million in the exchange.

“Facts are still coming to light, and there will be many lessons to learn. We feel deep regret for having invested in a founder and company who ultimately did not align with crypto’s values and who have done enormous damage to the ecosystem,” he said on Twitter

Read More: BlockFi Prepares For Bankruptcy Following The Fall Of FTX 

The executive also said the firm had invested only a fraction of its assets on FTX and had never traded or held assets on the exchange. Additionally, it had not invested in tokens associated with the exchange, including FTT.

“Paradigm’s equity investment in FTX constituted a small part of our total assets and has now been written down to $0. We never traded on FTX and did not have any assets on the exchange. We have never been investors in related tokens such as FTT, SRM, MAPS, or OXY,” he explained.

Questioning whether the firm conduct due diligence or not

Many Twitter users responded to the tweet by questioning whether the firm conducted enough due diligence before investing in or not. 

“you guys made a bad bet. you didn’t do your due diligence. and your endorsement led others to believe in & support the fraud that was SBF/FT that was very bad, and i hope you’ll strive to do better but i respect taking the L and publicly owning up to it. that is the right move,” said one Twitter user

Read More: Circle Has a $10.6 million Investment in FTX Group 

Other users also left similar comments, “Shocked? Shouldn’t you be embarrassed by your due diligence quality?. 

Cointelegraph spoke with CK Zheng, co-founder of digital assets hedge fund ZX Squared Capital, who expressed concern that many venture capitalists may not have done enough due diligence on FTX and its management.

“They don’t have a very good governance process, don’t have a board. It’s basically a one-man show,” CK Zheng said. 

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Jamilatul Mahmudah

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