Sino Global Capital Takes Legal Action Against FTX
Sino Global Capital, led by Matthew Graham, has filed a claim worth $67.3 million against defunct crypto exchange FTX on behalf of its Liquid Value fund. The fund, launched in collaboration with former FTX CEO Sam Bankman-Fried, aimed to raise $200 million and targeted high-net-worth individuals. FTX was described as a “co-GP and anchor LP” in the fund’s marketing material. By January 2022, the fund had raised $90 million, with FTX acting as an anchor investor. Sino Global announced earlier this year that it has hired former FTX COO Constance Wang as its head of gaming.
FTX Proposes Exchange Relaunch for Offshore Customers
FTX’s new management has proposed to reboot the exchange for offshore customers only. FTX.com customers will be categorized as “Dotcom Customer Entitlements” and will be entitled to proceeds from a sale or recapitalization of a rebooted FTX exchange. Efforts to revive FTX have gained traction, with the platform recovering over $7.3 billion in cash and liquid crypto assets. Venture firm Tribe Capital is seeking to lead a $250 million fundraising campaign for the new platform. Crypto veteran Loomdart has expressed support for an FTX relaunch to make creditors whole and increase trust in the industry.
Hot Take
The legal action taken by Sino Global Capital against FTX highlights the potential risks and challenges in the crypto industry. It also emphasizes the importance of due diligence and careful consideration when investing in crypto funds. The proposed relaunch of FTX for offshore customers only shows the efforts to regain trust and compensate those affected by the exchange’s implosion. However, it remains to be seen whether these actions will be enough to restore confidence in the platform and the industry as a whole.
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