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Japanese investment management firm Softbank might be the latest to emerge as a casualty from crypto exchange FTX’s fallout. The tech-focused firm reportedly had a nearly $100 million investment in the company
Softbank may decide to write off its whole investment in FTX as the exchange inches toward insolvency. FTX Founder Sam Bankman Fried this week said that without a cash influx soon, the exchange may have to file for bankruptcy
Softbank is expected to write off the investment in the December quarter, an anonymous source told Bloomberg
The investment had already been market close to cost and hadn’t recorded a boost in valuation or profits
Softbank had earlier participated in two funding rounds for FTX. This included a $900 million series B funding round last year and another $400 million this year
However, the company hasn’t yet disclosed the total value of its investment or how its stake has been performing
Sequoia Capital, one of FTX’s largest investors, had already revealed that its exposure to the exchange was limited. Earlier this week, it too noted that it had written off half of this investment, which was estimated at $200 million, in light of the recent chaos
FTX’s other largest backers include Singapore-government-owned investment firm Temasek at $205 million. It also includes Paradigm at $215 million and the Ontario Teachers’ Pension Plan at $80 million
