Temasek, Sequoia Capital, Softbank and 15 VCs face lawsuit for “abating” FTX fraud

A total of 18 leading equity capital financial investment firms consisting of the similarity Temasek, Sequoia Capital, Sino Global and Softbank have been named as accuseds in a class action suit filed in Miami for their links to now-bankrupt crypto exchange FTX.The claim filed on Aug. 7 alleged that these financial investment firms were responsible for assisting and abetting FTX fraud. The suit declared that the accuseds in the event used their “power, impact and deep pockets to launch FTXs house of cards to its multibillion-dollar scale”. Bit of Cabo vs. Temasek Holdings lawsuit. Source: courtlistener.comThe claim noted that the FTX cryptocurrency exchange broke a number of securities laws and stole customers funds while the offender VC companies particularly the likes of Temasek offered an imaginary photo of the exchange claiming they have done their due diligence. Therefore, these VC firms directly “perpetrated, conspired to commit, and/or aided and abetted the FTX Groups multi-billion-dollar scams for their own financial and expert gain.” While talking about the role of VC firms in helping and abating FTX scams, the complainants cited the example of Temasek and its statement concerning the monetary conditions of FTX. Temasek has actually claimed that they carried out an 8-month-long substantial evaluation of FTXs financial resources, audits and regulative checks and found no red flags. The suit read:”The Multinational VC Defendants also made various misleading and deceptive statements of their own about FTXs company, financial resources, operations, and potential customers for the purpose of causing clients to invest, trade, and/or deposit assets with FTX. “The match even more declared that these VC firms guaranteed the security and stability of the FTX and promoted FTXs supposed attempts to end up being correctly regulated.Temasek was among the early financiers in the FTX crypto exchange with a $275 million investment, but, after the collapse of the crypto exchange in November. The investment firm crossed out its entire investment in the exchange later on and later on even slashed settlement for the executives who were accountable for the FTX investment.Related: Prosecutors will still think about Sam Bankman-Frieds alleged project finance scheme at trialTemasek being a state-backed investment company likewise put the Singaporean government in a hot spot over its failure to curb such financial investment, FTX collapse created a crypto contagion and cast a shadow of doubt on the whole crypto ecosystem resulting in a dry spell in institutional crypto financial investment for months.Magazine: Deposit danger: What do crypto exchanges truly make with your cash?