- VC company Sequoia Capital removed a chronic September profile of FTX founder Sam Bankman-Fried this week.
- The URL now reveals Sequoia’s note telling consumers it’s marking down its $214 million FTX investment to $0.
- The profile of Bankman-Fried recounted his first pitch to Sequoia all through his Series B spherical.
Sequoia Capital removed its glowing profile of FTX founder Sam Bankman-Fried that was making the rounds on-line this week and replaced it with a somber exchange about its investment inside the agency, which has cratered and resulted in a whole write-off for the VC company.
The VC firm self-published the profile of 30-year-old Bankman-Fried in September, chronicling his ascent to a net worth of $24 billion and crypto tycoon standing, writing that he “himself has amassed more wealth in a shorter period of time than anyone else, ever.”
However, the 13,000-word profile was not accessible on Sequoia’s web page on Thursday as Bankman-Fried and FTX are reportedly scrambling to elevate spherical $8 billion from consumers to save the company for chapter.
In its place, Sequoia posted an update dated November 9, 2022, the place it says, “A liquidity crunch has created solvency risk for FTX and its future is uncertain.”
The exchange says “many” have moreover been affected by the “unexpected” crunch, nevertheless that the VC company’s fiduciary accountability is to its LPs. Sequoia linked to its letter about marking down its investment in FTX from spherical $214 million to $0.
“For FTX, we believe its fiduciary responsibility is first to its customers, and second to its shareholders,” the exchange says. “As such, FTX is exploring all opportunities to ensure its customers are able to recover their funds as quickly as possible.”
A spokesperson for Sequoia did not reply to Insider’s request for comment ahead of publication.
The profile, which had an estimated study time of over an hour, lined the founder’s story, from learning to commerce in New York’s financial district shopping for and promoting retailer, Jane Street, to the founding of his shopping for and promoting agency Alameda Research and subsequent founding of cryptocurrency platform FTX.
Bankman-Fried’s utilitarian upbringing and meeting with Will MacAskill, one of the founders of the environment friendly altruism movement, are highlighted inside the article to make clear his decision-making and reputation for donating to charity.
Bankman-Fried’s first pitch meeting with the VC company’s companions all through its Series B spherical may be included inside the profile, by way of which the founder laid out his imaginative and prescient to consumers for FTX to develop to be a super-app — all whereas he was participating within the on-line sport “League of Legends” on his laptop computer.
“We were incredibly impressed,” Michelle Bailhe, a confederate at Sequoia who organize the meeting, recounted inside the article. “It was one of those your-hair-is-blown-back type of meetings.”
The now-removed Sequoia profile is still available to read on the Internet Archive’s Wayback Machine.