Paradigm's Huang Regrets Backing FTX
Main page News, US Market, FTX, DeFi
Hot topic
Nov. 17, 2022

Matt Huang, Co-Founder of investment firm Paradigm, said in a tweet thread that the firm regrets for having invested in collapsed FTX since the exchange and its founder "did not align with crypto's values and who have done enormous damage to the ecosystem."

Subscribe to our Telegram channel to get daily short digests about events that shape the crypto world

Huang reassured the firm's clients that Paradigm constituted a "small part" of its total assets, adding that the team never traded on FTX and "did not have any assets on the exchange." He noted:

"We have never been investors in related tokens such as FTT, SRM, MAPS, or OXY."

The Paradigm Co-Founder believes that the FTX case can be solved with decentralized finance through "increased transparency and security," saying that crises such as this one "help to clarify the true merits of what we’re all building towards."

US Congress Launches Investigation into Binance's Role in FTX Collapse

In early November, Binance publicly announced plans to liquidate FTT from its reserves due to "recent revelations that have came to light." Although Binance's CEO, Changpeng Zhao, declined to explain what was the trigger behind the move, he had pointed out that the exchange "won't support people who lobby against other industry players behind their backs," referring to FTX.

Later, CZ publicly announced that Binance signed a letter of intent to acquire FTX, but soon walked away from the deal, citing "news reports regarding mishandled customer funds and alleged US agency investigations."

Access more than 50 of the world's financial markets directly from your EXANTE account – including NASDAQ, London Stock Exchange and Tokyo Stock Exchange

Read also:
Please describe the error