BlackRock and the Ontario Teachers’ Pension Plan Board have been affected by the collapse of FTX. Other investors in the $420 million funding round include Temasek, Sequoia Capital, and Tiger Global.
The world’s largest asset manager, BlackRock, and the Ontario Teachers’ Pension Plan Board are among those who have suffered from the fall of FTX. Both participated in a Series B-1 funding round for FTX. Other notable investors include Temasek, Sequoia Capital, and Tiger Global.
The Ontario Teachers’ Pension Plan Board is the third largest pension fund in Canada and participated in a Series B-1 funding round in October 2021. Even as the market was experiencing significant volatility, it was kept on FTX.
Naturally, all private investors in FTX have suffered greatly, and there is not much public comment from private investors available yet. Even NFL star Tom Brady, as well as ex-wife and model Gisele Bündchen have suffered losses as they have been listed as angel investors.
It is quite a steep drop for FTX and a concern for new investors in the crypto market. 2022 has been a rough year for cryptocurrencies, with the fall of the Terra ecosystem still fresh on everyone’s mind.
World’s Largest Asset Manager Takes a Hit
BlackRock and Tiger Global led the Series B-1 funding round last year, in which FTX raised $420 million. The former is the largest asset manager in the world, and its involvement in the crypto space is always taken seriously. However, it has not been disclosed how much it invested during the funding round.
BlackRock’s share value is down 2.43% today. While a massive impact from the FTX incident is unlikely to be seen, it’s still a notable casualty. The asset manager has made several forays into the crypto space, launching a Blockchain ETF in Europe, and partnering with Coinbase to offer crypto to institutional clients.
Fallout from the FTX Collapse Contained Temporarily
Among the private investors that have released a statement or update following the fall of FTX is Sequoia. The venture capital firm is reducing its investment in FTX to zero. It claimed that the funds in which FTX was held suffered marginal damage, with a loss of $150 million being offset by $7.5 billion in realized and unrealized gains.
Meanwhile, FTX is suffering considerably and says it could go bankrupt if it isn’t bailed out. There could be a shortfall as large as $8 billion. Binance was supposed to acquire FTX, but withdrew, citing mismanaged funds and investigations.
FTX CEO Sam Bankman-Fried also deleted a tweet that said FTX customer funds are safe. The websites of FTX Ventures and Alameda Research are also down.
By Audy Castaneda
