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<ul><li>The FTX crisis has put several FTX-related firms in a risk state.</li><li>VC firm Sequoia Capital reduced its FTX holding to zero.</li></ul><h2 id="header-0">On Nov. 10, venture capital firm Sequoia Capital tweeted a letter to its partners disclosing that the firm has reduced its $213.5 million investments in FTX and FTX US to $0, calling them a complete loss.</h2>The letter stated that the <a href="https://www.coingabbar.com/en/crypto-currency-news-english/ftx-landed-liquidity-crunch-binance-buying" rel="noopener noreferrer nofollow">FTX situation</a> has &#34;created a solvency risk,&#34; but that its exposure to the exchange is &#34;minimal&#34; in its Global Growth Fund III, with a cost basis of $150 million for the FTX portion of the fund.Sequoia further informed its partners that the write-off of FTX would not have a negative impact on the fund, stating that it accounted for less than 3% of the capital committed to it, adding:“The $150M loss in the same fund is offset by $7.5B in realized and unrealized profits, so the fund is still in a good position.”The venture capital company also reported a $63.5 million investment in FTX and FTX US via its Sequoia Capital Global Equities Fund. However, the stakes represented less than 1% of the total portfolio.Sequoia&#39;s investments in the now-defunct cryptocurrency exchange were made as part of FTX&#39;s $900 million Series B funding round in July 2021, which was the largest crypto investment ever reported at the time.In terms of the investment decision, Sequoia promised its partners that it thoroughly examines each and every investment, and FTX was no exception:“We conducted a thorough due diligence procedure before investing in <a href="https://www.coingabbar.com/en/crypto-currency/ftx-token-ftt-prices-usd" rel="noopener noreferrer nofollow">FTX</a>. FTX achieved about $1B in revenue and more than $250M in operating profitability in 2021, the year of our investment.”“We are in the risk-taking industry. Some investments may surprise to the upside, while others will surprise to the negative,” the letter explained.Sequoia also stated that it will notify its partners of its future steps as additional information became available.Sequoia Capital presently manages over $85 billion in assets and has previously made early investments in IT titans Apple and Google, as well as Airbnb.Read also: <a href="https://www.coingabbar.com/en/crypto-currency-news-english/solana-tvl-falls-as-ftx-turbulence-shakes-the-ecosystem" rel="noopener noreferrer nofollow">Solana TVL Falls 32.4% As FTX Turbulence Shakes The Ecosystem</a>

Sequoia Capital Reduces It's Whole $214 Million FTX Holding To Zero

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