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Redshirt Capital responds to SBF ruling: We were misled and deceived in due diligence

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Redshirt Capital responds to SBF ruling: We were misled and deceived in due diligence

Sequoia Capital partner Alfred Lin expressed his emotions in a post after SBF was convicted of seven charges, but he was mercilessly mocked by the cryptocurrency community. Everyone is very curious about the due diligence process of Sequoia.

SBF convicted of seven charges, sentenced to three months in prison. SBF: Respecting the jury's decision, I am innocent.

Sequoia Capital: We Were Misled and Deceived in Due Diligence

Sequoia Capital partner Alfred Lin tweeted that the ruling on SBF confirmed the facts that Sequoia held, that SBF deceived and misled many people, including customers, employees, investors, partners, and even himself and Sequoia.

After the bankruptcy of FTX, we immediately conducted a thorough review of Sequoia's due diligence process, assessing Sequoia's 18-month-long partnership with SBF, and our conclusion was that Sequoia was misled. During the investigation and trial, Sequoia had to remain silent, and we are pleased that the trial has concluded.

Crypto Community: What Did Sequoia Capital's Due Diligence Actually Involve?

Also in the venture capital field, Daniel Merja rationaly asked below Alfred Lin's tweet, but perhaps with a touch of irony:

Could you share the details of how SBF defrauded you and the Sequoia team? Could you write an article to help us learn from your experience?

Sequoia Capital's Alfred Lin Still Optimistic: Would Invest in FTX Again

Alfred Lin stated at the Bloomberg Technology Summit in June of this year:

  1. I looked at our work of investing in FTX in 15 different ways.

  2. If reassessed, we might still invest in FTX.

  3. Sequoia Capital remains very excited about the concept of cryptocurrency.

Even Meeting and Playing League of Legends with SBF Became a Positive? The Ridiculous Article by Sequoia Capital

Many in the crypto community have cited Sequoia Capital's article to mock the absurdity of Sequoia's due diligence.

Just over a month before the bankruptcy of FTX, Sequoia Capital released an article titled "SBF Has a Savior Mentality, Maybe You Should Too".

The article described a Zoom meeting in 2021 between Sequoia and SBF before investing in FTX.

During the meeting, several Sequoia members expressed their fondness for SBF in an internal group chat, and FTX's former product lead Ramnik Arora later revealed to Sequoia that SBF was actually playing "League of Legends" throughout the entire meeting.

Clearly, Sequoia Capital found this story amusing at the time, as they included it in the article.

After the bankruptcy of FTX, Sequoia Capital promptly took down the article.