Paradigm Loses Staff as Regulators Crack Down on Crypto: Report
Main page News, Crypto Market

Paradigm, a crypto-focused venture capital firm, is losing its staff as the market is embracing for tough times triggered by a cascade of bankruptcies.

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

According to a report from The Information, the San Francisco-based firm has lost "at least" eight employees, including two investment partners, starting from October 2022. While it is unclear what was the reason behind the re-organization nor how many people left the firm, the report notes the exits made up a "significant portion" of Paradigm's engineering and investing staff.

In November last year, shortly after FTX collapsed, Matt Huang, the Co-Founder and Managing Partner of Paradigm, said in a Twitter thread the firm was shocked by the revelations about FTX, Sam Bankman-Fried's hedge fund Alameda Research, and SBF himself.

Huang added that the firm felt "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."

Paradigm Announces Industry's Largest $2.5B Venture Fund

In mid-February, Paradigm was mentioned in a class-action suit among other investors who backed the notorious crypto exchange. The plaintiffs claimed that VC firms "portrayed" FTX as a "trustworthy and legitimate crypto exchange" as they wanted to monetize on their investments.

According to data from Crunchbase, FTX raised a total $1.8 billion in several funding rounds, including more than $100 million from Thoma Bravoin and over $250 million from Paradigm.

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