Paradigm co-founder Matt Huang said that the VC firm wrote down its investment in the bankrupt FTX exchange to zero, confirming what The Block had previously reported.
The executive also said that the firm’s investment was only a small part of its total assets and that it never traded or held assets on FTX. Additionally, it never invested in tokens related to the exchange such as FTT.
«We feel deep regret for having invested in a founder and company who ultimately did not align with crypto’s values and who have done enormous damage to the ecosystem,» Huang said on Twitter.
Paradigm’s investment totaled $290 million in a group of firms tied to ex-FTX CEO Sam Bankman-Fried.
Huang said that while some people have been left with doubts about the value of crypto following the quick demise of the exchange, «the issues at FTX are precisely ones that decentralized finance can solve through increased transparency and security.»
Paradigm launched a $2.5 billion crypto fund last year and has backed firms such as DeFi wallet Argent, decentralized exchange dYdX and Gauntlet.