July 21, 2024
Latest Cryptocurrency News

Sino Global Capital Sues FTX Trading for $67.3M Alleging Breach of Contract

Sino Global Capital, led by Matthew Graham, has filed a claim worth $67.3 million against FTX Trading Ltd. on behalf of its Liquid Value fund. The fund, launched in partnership with Sam Bankman-Fried in 2021, aimed to raise $200 million primarily from high-net-worth individuals. This marked a departure for Sino Global, as it was their first time seeking outside capital through a formal fund vehicle.

In the marketing material promoting the fund, FTX was referred to as a “co-GP and anchor LP,” with the potential to unlock “significant strategic value” by exposing investors to Bankman-Fried’s universe of tokens. By January 2022, the fund had already raised $90 million, with FTX acting as an anchor investor.

Initially, Sino Global stated that its direct exposure to the FTX exchange was limited to a substantial amount held in custody. Bankman-Fried was listed as an indirect investor in the fund on SEC filings from 2022, along with Alameda Research, subsidiary Alameda Ventures, and Graham.

As of 2023, the fund is no longer registered with the SEC but remains active under the supervision of the Cayman Islands Monetary Authority. The fund’s investing efforts have primarily focused on infrastructure and gaming, according to a spokesperson for Sino Global.

Following the collapse of FTX, Sino Global expressed regret for having trusted FTX as a reliable actor committed to advancing the industry.

In mid-July, Sino Global made an announcement about hiring Constance Wang, former COO of FTX and previously described as Bankman-Fried’s right-hand person in fundraising efforts, as its head of gaming.

Image By vecstock

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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