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Suspected of assisting FTX fraud! Temasek, Sequoia, SoftBank, and other institutions face collective lawsuit

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Suspected of assisting FTX fraud! Temasek, Sequoia, SoftBank, and other institutions face collective lawsuit

After the collapse of FTX, the Singapore government's Temasek Holdings, which invested $250 million, suffered a loss of face. Not only that, but large institutions that invested in FTX, including SoftBank, Sino Global Capital, SkyBridge, Multicoin, have recently been taken to court. The plaintiffs believe that the credibility of FTX's financial fraud is due to the fact that these well-known institutions invested in FTX and made misleading statements about FTX's prospects; at the same time, they funneled funds to FTX under deceptive conditions, deceiving investors.

FTX Financial Scam! Star Institutions Implicated

According to court documents from 8/7, a class-action lawsuit has exposed several prominent venture capital firms for alleged financial mismanagement and fraud.

Among them, companies such as SoftBank, Sino Global Capital, Temasek, SkyBridge, and Multicoin are named. The lawsuit emphasizes that these companies are central figures in the alleged fraud. Most defendants directly executed, conspired to execute, or aided and abetted FTX Group in defrauding billions of dollars to further their own economic and professional interests.

The plaintiffs allege that each institution either knew or willfully turned a blind eye to the fact that SBF's entire crypto empire was a scam.

As these institutions had ample access to due diligence information that was not made public, without their involvement, the largest financial fraud in U.S. history would not have occurred. While these institutions did not profit from the misappropriation of customer assets by FTX, they stood to gain immensely if not discovered; it is the users' assets that suffered.

Therefore, the class-action lawsuit aims to seek compensation from institutions that were complicit, involved, or directly enabled FTX Group and SBF in perpetrating the fraud.

Background: Temasek of Singapore: Conducted an eight-month due diligence on FTX, acknowledged a $275 million investment loss

Background: Multicoin's Letter to Investors: We Placed Too Much Trust in FTX

Sino Global Capital Also Seeking Money from FTX

Sino Global Capital recently filed a claim against FTX for up to $67 million, sparking community discussions. Sino Global Capital explained that the claim is related to FTX's fund shares in Sino Global Capital, where FTX's stake in the investment fund will be auctioned off; it will not affect the rights of creditors.