Sino Global, a blockchain and digital assets-focused investment firm, today revealed losses suffered due to its exposure to the collapsed crypto exchange FTX, however, insists it continues operations “as normal.”
“Our direct exposure to FTX exchange was confined to mid-seven figures held in custody. Our investment into the equity of FTX was made prior to the launch of our fund, and we did not invest any LP capital into FTX,” Sino Global said in a statement shared on Twitter.
Based in Nassau, Bahamas, Sino Global invested in both FTX and its U.S. arm.
In January 2022, Sino teamed up with FTX to launch Liquid Value Fund I, a $200 million close-ended venture fund with a primary focus on Defi, Web3, and mass consumer protocols on Solana and Ethereum.
FTX founder Sam Bankman-Fried, commonly known as SBF, was listed among indirect owners of the fund, while the exchange’s sister company Alameda Research was listed among the “direct owners,” per SEC fillings.
Sino Global said that in the past few days, the firm has been solely concentrated on two things: protecting our LPs and working with our portfolio companies, many of whom have never experienced periods of such intense volatility
Sino Global is functioning as normal and continues to invest in a fund.
The firm went on to say that Sino Fund investments have been balanced across ecosystems and that it doesn’t employ any leveraged or short-term trading strategies that would affect investment positions.
