Institutional investors measure damage from FTX collapse on portfolios

FTX.com was valued as recently as January at $32 billion in a fundraising round from investors including Temasek, Paradigm, Ontario Teachers’ Pension Plan Board and SoftBank Vision Fund 2, according to Bloomberg.

FTX founder and CEO Sam Bankman-Fried has appeared before the House Financial Services Committee to discuss the future of digital assets and was seen as a torchbearer for the new asset class.

With FTX.com facing a shortfall of as much as $8 billion, Mr. Bankman-Fried has been attempting to raise rescue financing, claiming to need $4 billion to remain solvent, Bloomberg reported. A bailout from rival crypto exchange Binance fell apart on Wednesday. Mr. Bankman-Fried said on Thursday that Alameda Research, the secretive proprietary trading firm he started before launching FTX, is winding down amid the fallout.

Both the Securities Exchange Commission and the Commodity Futures Trading Commission are investigating FTX.

“This has been pretty shocking,” Pranav Kanade, the portfolio manager of a liquid digital asset hedge fund at VanEck, said about FTX’s insolvency, in an interview. “We think an event like this really sent back institutional adoption.”

According to FactSet Research Systems, Bloomberg and P&I‘s research database, other investors with direct or indirect exposure to FTX include BlackRock, Tiger Global Management, Thoma Bravo, Lightspeed Venture Partners, Senator Investment Group and VanEck, and hedge fund managers Paul Tudor Jones, Alan Howard and Israel “Izzy” Englander.

Palash Ghosh and Bloomberg contributed to this story.

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