Bankruptcy of FTX: Samsung is among the victims

Samsung Next, a Samsung-owned investment firm, is also among the victims of the fallen crypto exchange FTX.

So far, the exact amount of Samsung Next’s investment in Sam Bankman-Fried’s exchange is unknown. We know, however, that the company participated last year in a fundraiser that allowed FTX to collect $420 million.

Samsung Next, the investment company of Samsung, invests in six different areas, namely: artificial intelligence, fintech, healthcare, infrastructure, media technology and blockchain.

Samsung therefore joins the long list of victims of the FTX collapse, which includes BlockFi, Sequoia Capital, Temasek, Tiger Global and Softbank, among others. The tech giant, however, assures that its activities will not be affected by this bankruptcy, because the envelope allocated to FTX represented only a small part of its wallet of investment.

The FTX scandal has sent shockwaves through the entire crypto market and it looks like the nasty surprises aren’t over yet. The extent of the damage caused by the fall of FTX has even prompted lawmakers in some countries to tighten the noose on all companies of the sector.

Samsung: a powerful ally for crypto startups

Overview of Samsung Next’s investment portfolio (Source)

Samsung Next was born in 2013 in Silicon Valley. Since its launch, the company has made significant investments in the technology, blockchain and crypto sectors.

Some of the crypto companies funded by Samsung Next include: Flow, Alchemy, SuperRare, CryptoKitties, Dapper Labs, and ImmuneFi. When it invested in FTX last year, the South Korean company thought that FTX was “state of the art Web 3.0”.

Samsung Next had even praised FTX for “its compliance and its determination to achieve its objectives”. Aside from its recent statement about its financial health, Samsung has not commented on FTX’s bankruptcy.

Sequoia and Paradigm consider their investments in FTX as lost

Samsung Next is unfortunately not the only company affected by the flash FTX bankruptcy. And, she is certainly not the most aggrieved. Some investors, like Sequoia and Paradigm, have decided to write down the value of their respective investments in the fallen exchange to 0.

The Ontario Teachers’ Pension Plan, which faced much criticism for its investment in FTX, also made the same decision as Sequoia and Paradigm. As a reminder, the organization had invested 95 million dollars in the company of Sam Bankman-Fried, but according to its leaders, the impact of the loss would be minimal.

Undoubtedly, the FTX scandal dealt a serious blow to the reputation of the crypto market. From now on, investment companies like Samsung Next will think twice beforeinvest in crypto projects.

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Bankruptcy of FTX: Samsung is among the victims


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