Categories: News

Sino Global Asks FTX To Pay $67 Million Losses

Key Points:

  • Sino Global Capital files a $67.3 million claim against FTX over fund partnership fallout.
  • Liquid Value fund targeted high-net-worth individuals, raised $90 million, but FTX link wavered.
  • Huobi and Galois Capital’s losses to FTX spotlight cryptocurrency market risks.
Sino Global Capital’s Liquid Value fund, managed by Matthew Graham, has lodged a $67.3 million claim against FTX Trading Ltd., according to a CoinDesk report.
Sino Global Asks FTX To Pay $67 Million Losses 2

The fund, striving to amass $200 million, primarily targets high-net-worth individuals. This venture marked a significant shift for Sino, as it marked their first foray into external capital sourcing through a formal fund mechanism.

FTX’s role was initially characterized as “co-GP and anchor LP” in the promotional material for the fund.

The prospect of leveraging Bankman-Fried‘s diverse token universe was highlighted. By January 2022, the fund had already garnered $90 million in investments, with FTX being a prominent anchor investor.

While Sino Global initially claimed their connection with FTX was limited to a mid-seven-figure custody holding, SEC filings from 2022 disclosed Bankman-Fried’s indirect investment in the fund, along with Alameda Research and its subsidiary, Alameda Ventures.

Although the fund is no longer under SEC registration, it remains active under the jurisdiction of the Cayman Islands Monetary Authority. This move comes as the latest development in an ongoing saga that started with the fund’s partnership with Sam Bankman-Fried in 2021.

Looking back to the prior year’s conclusion, Sino admitted that their exposure to FTX had crumbled, resulting in damage amounting to an undisclosed “seven-digit” sum.

Before Sino’s predicament, a series of other victims had also come forward, revealing their own exposure and vulnerabilities to FTX. For instance, Huobi faced an $18 million setback, while the Genesis Capital fund sustained losses amounting to $40 million.

In response to FTX’s collapse, Sino released a statement expressing their initial trust in FTX’s commitment to industry advancement.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.

Recent Posts

Qubetics, Cosmos, and Chainlink: Why These Cryptos Are Your Best Bet for November 2024

Discover why Qubetics, Cosmos, and Chainlink are the best cryptos to buy in November 2024.…

2 hours ago

Best Cryptos to Buy in December 2024: Qubetics Presale Goes Ballistic as Ethereum and Quant Look to Build Momentum

Best Cryptos to Buy in December 2024: Qubetics ($TICS) presale explodes, Ethereum (ETH) eyes a…

5 hours ago

USDC and CCTP to launch on Aptos, with Stripe adding Aptos support in crypto products

Palo Alto, California, 21st November 2024, Chainwire

7 hours ago

Best Cryptos to Buy: Qubetics Set to Rise, Bitcoin Knocks at $100k Milestone, Avalanche to Release 1.67M Tokens

Best Cryptos to Buy: Qubetics presale rockets ahead, Bitcoin nears $100k, and Avalanche prepares to…

7 hours ago

Ike Goes Live on Mainnet: Unlocking Liquid Staking on Aleph Zero

London, United Kingdom, 21st November 2024, Chainwire

8 hours ago

Native USDC on Aptos Coming Soon to Boost DeFi and P2P Transactions

The move will see developers utilize USDC on Aptos in creating dApps on a wide…

8 hours ago

This website uses cookies.