FTX Investor Files Suit Against Sequoia Capital, Thoma Bravo, Paradigm

Posted on March 3rd, 2023 at 2:18 PM
FTX Investor Files Suit Against Sequoia Capital, Thoma Bravo, Paradigm

From the Desk of Jim Eccleston at Eccleston Law

A cryptocurrency investor has filed suit against private equity firms including Sequoia Capital, Thoma Bravo, and Paradigm for improperly touting the legitimacy of FTX. 

The firms collaborated on a 2021 marketing campaign to hype their own investments in FTX entities, according to the proposed class-action complaint. The complaint alleges that the marketing campaign contributed an “air of legitimacy” to the business that subsequently filed for bankruptcy while the co-founder, Sam Bankman-Fried, now faces criminal charges.  Sequoia in particularly has attracted heightened scrutiny as it previously published a 14,000-word profile about the entrepreneur titled “Sam Bankman-Fried Has a Savior Complex — And Maybe You Should Too.” 

The firms claim to have conducted sufficient due diligence of FTX’s operations before Thoma Bravo invested more than $100 million while Paradigm invested at least $250 million, according to the complaint, which was filed in federal court in San Francisco. The class-action complaint alleges several violations of state and federal law, including misrepresentation, false advertising, and civil conspiracy. 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: Eccleston, Eccleston Law

Return to Archive

TESTIMONIALS

Previous
Next

I just wanted to say thanks again for preparing and executing my case in such a professional manner. It was a pleasure to watch two professionals take such pride in their work, as well as becoming personally in tune with your client (Me). I would personally recommend you and your firm to anyone.

John O.

LATEST NEWS AND ARTICLES

October 11, 2024
Macquarie Investment Management to Pay $79.8 Million for Overvalued CMOs and Unlawful Cross Trades

The U.S. Securities and Exchange Commission (SEC) has charged Macquarie Investment Management Business Trust (MIMBT) with overvaluing collateralized mortgage obligations (CMOs) and executing unlawful cross-trades that favored certain clients. 

October 10, 2024
Merrill Lynch and Harvest Volatility Management Fined $9.3 Million for Exceeding Client Investment Limits

According to SEC.gov, the Securities and Exchange Commission (SEC) has charged Merrill Lynch, Pierce, Fenner & Smith Inc., and Harvest Volatility Management LLC for exceeding clients’ designated investment limits, resulting in higher fees, increased market exposure, and financial losses. 

October 9, 2024
Charles Schwab Faces Lawsuit Over Failure to Prevent Elder Fraud in Computer Hack

A new lawsuit claims that Charles Schwab failed to protect an elderly client from a fraudulent scheme that drained her retirement savings.