SoftBank Writes Off US$100mn Investment in Bankrupt Crypto Exchange FTX
Moneylife Digital Team 15 November 2022
Beleaguered Japanese investment firm SoftBank has reportedly written off about US$100mn (million) it invested as part of its Vision Fund 2 in now bankrupt crypto exchange FTX.
According to MarketWatch, the investment is now marked down to zero with SoftBank saying "it would not face a material markdown in the value of its stake."
SoftBank had backed FTX after the start-up raised US$400mn in January, valuing it at US$32bn (billion).
SoftBank has now disclosed a US$100mn venture capital investment in crypto broker FTX.
Softbank CFO Yoshimitsu Goto was quoted as saying that US$100bn Vision Fund invested in FTX "as a minor stake in the company."
"If any case of markdown but still that is very not material for us," Mr Goto said during the company's second quarter (Q2) results.
SoftBank has a history of pouring money in bad start-ups, like the US$18.5bn investment in WeWork.
The Japanese VC firm also infused US$500mn into digital mortgage lender which laid off thousands of employees under its Indian-origin co-founder and chief executive officer (CEO) Vishal Garg.
Crypto exchange FTX has admitted that 'unauthorised transactions' have drained hundreds of millions of dollars from its wallets, saying the company has moved many digital assets to a new 'cold wallet custodian'.
FTX, which last week filed for bankruptcy in the US, did not reveal how much it lost in unauthorised transactions but reports claimed the amount could be as high as US$600mn.
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