Venture capital firm Sino Global Capital sued FTX on behalf of Sino’s Liquid Value Fund, seeking $67 million in damages. It was co-created with ex-head of the collapsed exchange Sam Bankman-Freed in 2021. It is reported by CoinDesk.
The organization targets the wealthy and planned to raise $200 million. In January 2022, the fund received $90 million in funding, with FTX Trading acting as the main investor.
Bankman-Fried was listed as an indirect contributor along with Alameda Research and its subsidiary Alameda Ventures. Initially, Sino Global noted that its direct interaction with the exchange was limited to holding a “seven-figure amount.”
As of 2023, Sino’s Liquid Value is no longer registered with the US Securities and Exchange Commission, but continues to operate under the jurisdiction of the Cayman Islands.
Shortly after the collapse of the trading platform, the venture capital firm issued a statementwhich stated that it “trusted FTX as a good player looking to move the industry forward”.
In mid-July, Sino Global announced the appointment of former FTX COO Constance Wang as Head of Video Games.
Earlier, FTX and crypto lending platform Genesis reached an agreement in principle to settle claims filed against the crypto exchange as part of its bankruptcy case.
Recall that in August, the company’s lawyers presented a plan to restart the offshore exchange with access for users outside the United States. The proposal was later criticized by FTX creditors.
Found a mistake in the text? Select it and press CTRL+ENTER
ForkLog Newsletters: Keep your finger on the pulse of the bitcoin industry!