United

Northern

According to recent <a href="https://cointelegraph.com/news/temasek-sequoia-capital-softbank-vcs-lawsuit-ftx-fraud" rel="noopener noreferrer nofollow">reports</a>, eighteen major venture capital (VC) investment companies, including Temasek, Sequoia Capital, Sino Global, and Softbank, are among those which are accused in a class-action <a href="https://www.courtlistener.com/docket/67673231/1/cabo-v-temasek-holdings-private-limited/" rel="noopener noreferrer nofollow">lawsuit</a> that was presented in the United States District Court for the Northern District of California for their financial connection to the now-defunct cryptocurrency exchange FTX.&nbsp; 
<h2 id="span-style-font-weight-400-vcs-funded-ftx-s-house-of-cards-span">VCs Funded FTX’s House of Cards</h2> 
According to the complaint, the defendants utilized their “power, influence, and deep pockets to launch FTX’s house of cards to its multibillion-dollar scale.” 
In accordance with the lawsuit, filed on August 7, the investment companies were “aiding and abetting” the FTX fraud. According to the lawsuit, these VC companies “perpetrated, conspired to perpetrate, and/or aided and abetted the FTX Group’s multi-billion-dollar frauds for their own financial and professional gain.” 
<h3 id="span-style-font-weight-400-no-violations-discovered-span">No Violations Discovered</h3> 
The suit reads: “The Multinational VC Defendants also made numerous deceptive and misleading statements of their own about FTX’s business, finances, operations, and prospects for the purpose of inducing customers to invest, trade, and/or deposit assets with FTX.“ 
As an example, the complaining parties asserted that Temasek claimed to have done an eight-month study of the exchange’s finances, audits, and regulatory checks, claiming that it discovered no violations of the law.&nbsp; 
<h2 id="span-style-font-weight-400-vcs-distancing-themselves-from-ftx-span">VCs Distancing Themselves from FTX</h2> 
On the other hand, Temasek Holdings, once a major investor for FTX, declared its decision <a href="https://thecoinrise.com/temasek-writes-down-275m-investment-in-ftx/" rel="noopener noreferrer nofollow">to put off all of its stake</a> in the platform following the exchange’s demise. 
<h3 id="span-style-font-weight-400-celebrities-under-regulatory-scrutiny-as-well-span">Celebrities Under Regulatory Scrutiny as well</h3> 
In the wake of promoting the illegal enterprises, consumers and authorities are strongly investigating a number of celebrities. Following the FTX’s demise, <a href="https://thecoinrise.com/celebrities-promoting-ftx-are-now-caught-in-regulatory-crosshairs/" rel="noopener noreferrer nofollow">a number of celebrities</a>, such as <a href="https://thecoinrise.com/ftx-welcomes-tennis-star-naomi-osaka-as-its-fresh-ambassador/" rel="noopener noreferrer nofollow">tennis star Naomi Osaka</a> and NFL quarterback <a href="https://thecoinrise.com/texas-regulator-probes-ftx-promoters-brady-and-stephen-curry/" rel="noopener noreferrer nofollow">Tom Brady as well as Stephen Curry</a> NBA point guard, were under the regulatory claws given that they had participated in the promotion of FTX, and they were all included as respondents in the court case. 
In March, <a href="https://thecoinrise.com/crypto-youtuber-tom-nash-named-in-ftx-lawsuit/" rel="noopener noreferrer nofollow">Tom Nash, a crypto YouTuber</a>, received a notice of class-action complaint alleging that influencers had a “major role” in the FTX scandal. It was also stated that the crypto exchange wouldn’t have gotten to this point without their support and “hype.” 
The post <a rel="noopener noreferrer nofollow" href="https://thecoinrise.com/vc-firms-sued-for-funding-ftx-exchange/">VC Firms Sued for Funding FTX Exchange</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://thecoinrise.com">Latest News and Insights on Blockchain, Cryptocurrency, and Investing</a>.

VC Firms Sued for Funding FTX Exchange

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