By using this site, you agree to the Privacy Policy and Terms of Use.
Accept

News Junction

Notification Show More
Font ResizerAa
  • Home
  • World News
    World NewsShow More
    U.S. to cut tariffs on small packages from China to as low as 30% – National
    U.S. to cut tariffs on small packages from China to as low as 30% – National
    May 14, 2025
    A book points to Biden’s decline and Democrats’ cowardice: 6 takeaways
    A book points to Biden’s decline and Democrats’ cowardice: 6 takeaways
    May 14, 2025
    In one Indian city, reflective paint and bus stop sprinklers offer relief from killer heat
    In one Indian city, reflective paint and bus stop sprinklers offer relief from killer heat
    May 14, 2025
    Ousted Bangladesh PM Hasina’s party barred from election as party registration suspended
    Ousted Bangladesh PM Hasina’s party barred from election as party registration suspended
    May 14, 2025
    Cassandra Ventura testifies, tells jury freak offs became a job
    Cassandra Ventura testifies, tells jury freak offs became a job
    May 13, 2025
  • Business
    BusinessShow More
    Ukraine blows up bridges to consolidate its positions in Russia
    Ukraine blows up bridges to consolidate its positions in Russia
    August 18, 2024
    Commentary: AI phones from Google and Apple will erode trust in everything
    Commentary: AI phones from Google and Apple will erode trust in everything
    August 18, 2024
    The most famous Indian Dishes – Insights Success
    The most famous Indian Dishes – Insights Success
    August 18, 2024
    Life on the road as a female long rides cyclist
    Life on the road as a female long rides cyclist
    August 18, 2024
    UK inflation rises to 2.2%
    UK inflation rises to 2.2%
    August 18, 2024
  • Cryptocurrency
    CryptocurrencyShow More
    eToro prices IPO at , eyes Nasdaq amid shifting sentiment
    eToro prices IPO at $52, eyes Nasdaq amid shifting sentiment
    May 14, 2025
    Bitcoin (BTC) Still Dominates the Market With 3,000 Price Tag, But Investors Are Rushing to Get in On Ruvi AI (RUVI) Thanks to 100% Early Bonus and 20,000% Price Prediction
    Bitcoin (BTC) Still Dominates the Market With $103,000 Price Tag, But Investors Are Rushing to Get in On Ruvi AI (RUVI) Thanks to 100% Early Bonus and 20,000% Price Prediction
    May 14, 2025
    Dogecoin Price Completes Weekly Close Above Pre-Halving Highs, Next Stop Above alt=
    Dogecoin Price Completes Weekly Close Above Pre-Halving Highs, Next Stop Above $0.2?
    May 14, 2025
    Cantor Equity Partners (CEP) News: 4,812 Bitcoin Purchased
    Cantor Equity Partners (CEP) News: 4,812 Bitcoin Purchased
    May 14, 2025
    BTC, ETH, XRP, BNB, SOL, ADA, DOGE, PI, LEO, HBAR
    BTC, ETH, XRP, BNB, SOL, ADA, DOGE, PI, LEO, HBAR
    May 14, 2025
  • Technology
    TechnologyShow More
    How to Improve Your Spotify Recommendations
    How to Improve Your Spotify Recommendations
    August 18, 2024
    X says it’s closing operations in Brazil
    X says it’s closing operations in Brazil
    August 18, 2024
    Supermoon set to rise: Top tips for amateur photographers | Science & Tech News
    Supermoon set to rise: Top tips for amateur photographers | Science & Tech News
    August 18, 2024
    Scientists Want to See Videos of Your Cat for a New Study
    Scientists Want to See Videos of Your Cat for a New Study
    August 18, 2024
    OpenAI’s new voice mode let me talk with my phone, not to it
    OpenAI’s new voice mode let me talk with my phone, not to it
    August 18, 2024
  • Entertainment
  • Sports News
  • People
  • Trend
Reading: Temasek, Sequoia Capital, Softbank and 15 VCs face lawsuit for “abating” FTX fraud
Share
Font ResizerAa

News Junction

  • World News
  • Business
  • Technology
  • Cryptocurrency
  • Trend
  • Entertainment
Search
  • Recent Headlines in Entertainment, World News, and Cryptocurrency – NewsJunction
  • World News
  • Business
  • Cryptocurrency
  • Technology
  • Entertainment
  • Sports News
  • People
  • Trend
Have an existing account? Sign In
Follow US
News Junction > Blog > Cryptocurrency > Temasek, Sequoia Capital, Softbank and 15 VCs face lawsuit for “abating” FTX fraud
Temasek, Sequoia Capital, Softbank and 15 VCs face lawsuit for “abating” FTX fraud
Cryptocurrency

Temasek, Sequoia Capital, Softbank and 15 VCs face lawsuit for “abating” FTX fraud

Published August 9, 2023
Share
3 Min Read
SHARE

A total of 18 leading venture capital investment firms including the likes of Temasek, Sequoia Capital, Sino Global and Softbank have been named as defendants in a class action lawsuit filed in Miami for their links to now-bankrupt crypto exchange FTX.

The lawsuit filed on Aug.7 alleged that these investment firms were responsible for ‘aiding and abetting’ FTX fraud. The suit claimed that the defendants in the case used their “power, influence and deep pockets to launch FTX’s house of cards to its multibillion-dollar scale”.

Snippet of Cabo vs. Temasek Holdings lawsuit. Source: courtlistener.com

The lawsuit noted that the FTX cryptocurrency exchange violated several securities laws and stole customers’ funds while the defendant VC firms especially the likes of Temasek offered an illusive picture of the exchange claiming they have done their due diligence. Thus, these VC firms directly “perpetrated, conspired to perpetrate, and/or aided and abetted the FTX Group’s multi-billion-dollar frauds for their own financial and professional gain.”

While talking about the role of VC firms in aiding and abating FTX fraud, the plaintiffs cited the example of Temasek and its statement regarding the financial conditions of FTX. Temasek has claimed that they conducted an 8-month-long extensive review of FTX’s finances, audits and regulatory checks and found no red flags. The suit read:

“The Multinational VC Defendants also made numerous deceptive and misleading statements of their own about FTX’s business, finances, operations, and prospects for the purpose of inducing customers to invest, trade, and/or deposit assets with FTX. “

The suit further alleged that these VC firms vouched for the safety and stability of the FTX and  advertised FTX’s purported attempts to become properly regulated.

Temasek was one of the early investors in the FTX crypto exchange with a $275 million investment, but, after the collapse of the crypto exchange in November. The investment firm wrote off its entire investment in the exchange later and later even slashed compensation for the executives who were responsible for the FTX investment.

Related: Prosecutors will still consider Sam Bankman-Fried’s alleged campaign finance scheme at trial

Temasek being a state-backed investment firm also put the Singaporean government in a hot seat over its failure to curb such investment,

FTX collapse created a crypto contagion and cast a shadow of doubt on the entire crypto ecosystem leading to a drought in institutional crypto investment for months.

Magazine: Deposit risk: What do crypto exchanges really do with your money?

#Temasek #Sequoia #Capital #Softbank #VCs #face #lawsuit #abating #FTX #fraud

TAGGED:abatingCapitalfacefraudFTXlawsuitSequoiaSoftBankTemasekVCs
Share This Article
Facebook Twitter Pinterest Whatsapp Whatsapp LinkedIn Email Copy Link Print
Share
What do you think?
Love0
Sad0
Happy0
Sleepy0
Angry0
Dead0
Wink0
Previous Article Google’s Messages app will now use RCS by default and encrypt group chats Google’s Messages app will now use RCS by default and encrypt group chats
Next Article Jonathan Taylor continues rehab, remains on PUP list as Colts prepare for preseason opener Jonathan Taylor continues rehab, remains on PUP list as Colts prepare for preseason opener
- Advertisement -

Latest Post

eToro prices IPO at , eyes Nasdaq amid shifting sentiment
eToro prices IPO at $52, eyes Nasdaq amid shifting sentiment
Cryptocurrency
U.S. to cut tariffs on small packages from China to as low as 30% – National
U.S. to cut tariffs on small packages from China to as low as 30% – National
World News
Bitcoin (BTC) Still Dominates the Market With 3,000 Price Tag, But Investors Are Rushing to Get in On Ruvi AI (RUVI) Thanks to 100% Early Bonus and 20,000% Price Prediction
Bitcoin (BTC) Still Dominates the Market With $103,000 Price Tag, But Investors Are Rushing to Get in On Ruvi AI (RUVI) Thanks to 100% Early Bonus and 20,000% Price Prediction
Cryptocurrency
A book points to Biden’s decline and Democrats’ cowardice: 6 takeaways
A book points to Biden’s decline and Democrats’ cowardice: 6 takeaways
World News
Dogecoin Price Completes Weekly Close Above Pre-Halving Highs, Next Stop Above alt=
Dogecoin Price Completes Weekly Close Above Pre-Halving Highs, Next Stop Above $0.2?
Cryptocurrency
In one Indian city, reflective paint and bus stop sprinklers offer relief from killer heat
In one Indian city, reflective paint and bus stop sprinklers offer relief from killer heat
World News
- Advertisement -

You Might Also Like

French privacy watchdog questions Worldcoin’s data collection method: Report
Cryptocurrency

French privacy watchdog questions Worldcoin’s data collection method: Report

July 29, 2023
Private Banking Firm With B Assets Starts First Crypto Fund of Spain
Cryptocurrency

Private Banking Firm With $14B Assets Starts First Crypto Fund of Spain

July 27, 2023
Thailand Warns Facebook Over Crypto Fraud and Scam Ads
Cryptocurrency

Thailand Warns Facebook Over Crypto Fraud and Scam Ads

August 22, 2023
India to Launch a Native Web Browser Powered with Crypto…
Cryptocurrency

India to Launch a Native Web Browser Powered with Crypto…

August 10, 2023

About Us

NEWS JUNCTION (NewsJunction.xyz) Your trusted destination for global news. Stay informed with our timely and accurate reporting on diverse topics, including politics, technology, science, entertainment, sports, and more. Count on us for unbiased and reliable updates at your fingertips.

Quick Link

  • About
  • Disclaimer
  • Privacy Policy
  • Terms of Use
  • Contact

Top Categories

  • World News
  • Business
  • Technology
  • Entertainment
  • Cryptocurrency
  • Sports News
  • Trend
  • People

Subscribe

Subscribe to our newsletter to get our newest articles instantly!

    © 2023 News Junction.
    • Blog
    • Advertise
    • Contact
    Welcome Back!

    Sign in to your account

    Username or Email Address
    Password

    Lost your password?