Sino Global Capital Suffers Direct Exposure to FTX Downfall.
Matthew Graham-led Sino Global Capital has sustained direct exposure, which is confined to mid-seven figures, to FTX exchange held in custody. The firm’s indirect exposure might include a portfolio of digital tokens that stood at $129 million. Many of the tokens, as per investor documents, include Solana’s SOL.
In an official statement, Sino Global said the firm’s direct exposure to FTX exchange was confined to mid-seven figures held in custody. Its investment into the equity of Sam Bankman-Fried crypto exchange was made prior to the launch of its fund. Sino Global did not invest any LP Capital into FTX. But the firm had invested in both FTX and its U.S arm.
Sino Global collaborated with FTX, in January 2022, to launch Liquid Value Fund I – a $200 million close-ended venture fund with a primary focus on Defi, Web3, and mass consumer protocols on Solana and Ethereum. The venture capital firm, in the last couple of days, has been solely concentrated on protecting its LPs and working with its portfolio companies. Sino Global is operating as normal and continues to invest in a fund. Its current fund focuses on infrastructure and gaming.
The firm highlighted that its investments have been balanced across ecosystems. It doesn’t employ any leveraged or short-term trading strategies that would impact investment positions. Sino Global said it trusted FTX like other crypto companies to be a good actor committed to pushing the industry forward. Now, the firm regrets that misplaced trust.