Sequoia Capital’s Alfred Lin has defended the firm’s investment of $213.5m in the now-bankrupt crypto exchange FTX, stating that if evaluated again, they would likely make the same decision. Despite the loss, Lin reiterated Sequoia’s excitement about the concepts of crypto and added that their investment thesis is reliant on trusting founders and taking calculated risks, as not all investments will deliver.
The venture firm faces a lawsuit from users of the bankrupt exchange who are suing Sequoia and other financiers for their involvement in a promotional marketing campaign in 2021 that allegedly added legitimacy to FTX. The firms were investors in FTX’s $900m Series B round in July 2021, the largest raise in crypto history.
Sequoia Capital has around $85 billion of assets under management, with investments in major technology companies and several crypto businesses.