BlackRock lost $24M in FTX collapse News ▸ FTX ▸ Bear Market
BlackRock lost $24M in FTX collapse
BlackRock's CEO said the investment was small and not part of Blackrock's core business.
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Updated: Dec. 1, 2022 at 11:24 am UTC
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BlackRock‘s CEO Larry Fink revealed that the asset manager had invested $24 million in FTX, which it considers lost.
Fink added that the investment was small and not part of Blackrock’s core business. Fink confirmed the loss on Nov. 30 during an interview with New York Times columnist Andrew Sorkin.
BlackRock was misled?
After Fink’s confirmation, Sorkin mentioned that the majority of the large firms like Blackrock and Sequoia Capital had invested in FTX, and they all lost.
“It appears like nobody was minding the store.”
Sorkin said and asked about Fink’s opinion on the matter.
Fink said that he didn’t think nobody was “minding the stores.” “If you look at the Sequoias of the world,” Fink said, “they’ve had unbelievable returns over a long period of time. I’m sure they did the due diligence.”
However, Fink also acknowledged that Sequoia may have been misled during its due diligence. He said:
“Could they [Sequoias of the world] have been misled? Could they have done other things? Have we been misled in the small little investment we did? Sure. But until we have more facts of it, I will not speculate.”
Sequoia Capital revealed that it invested $200 million in FTX, and marked its investment down to zero on Nov. 10,
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Zeynep Geylan
Zeynep is an academic who turned to crypto in 2018. Originating in social sciences, she is especially interested in the social impact of blockchain and cryptocurrencies and strongly believes in their transmuting power.
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BlackRock
BlackRock, synonymous with global asset management, is an American multinational investment management corporation based in New York City.
FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.