Through its $430 million venture fund, Multicoin Capital, a premier cryptocurrency venture capital firm, has disclosed its over $25 million interest in FTX.
The communication stated that the 5.8% of the fund is equivalent to a $25 million investment made by the third venture fund of the cryptocurrency venture capital firm. In July, Multicoin made the $430 million fund public. Other unidentified institutional investors in addition to its creators Kyle Samani as well as Tushar Jain were the fund’s largest limited partners.
The venture fund had about $2 million in FTX International in addition to its $25 million stake in FTX US. It claimed to hold this money as a portion of its investments were paid for using USDC sent through the exchange’s cryptocurrency rails instead of through wire transfers of US dollars. The message mentions Binance’s pending purchase, indicating that it was prepared prior to the deal’s collapse on November 9. The company stated that they anticipated recovering the full position.
The USD stored at FTX International might not be recovered in whole, and recovery would probably take longer. Despite this, the statement reiterated that the company has sufficient capital.
On November 11, FTX filed for Chapter 11 bankruptcy status after the announcement that it will be acquired by competitor Binance due to a liquidity shortage.
Almost 10% of the entire AUM of the Multicoin Master Fund is stranded on the cryptocurrency exchange per a different statement.