Key points
- Thoma Bravo has retired from cryptocurrency investments after his FTX bet failed.
- The company’s founder maintains his belief in blockchain technology.
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Thoma Bravo, who manages approximately $160 billion in assets under management, has decided to permanently withdraw from the cryptocurrency market following his ill-fated investment in FTX, Orlando Bravo, the principal of the major private equity firm, said in a recent interview with CNBC.
The Miami-based tech investor was part of a group of investors that led a $900 million investment in ftx in 2021, valuing the exchange at approximately $18 billion. The firm invested approximately $130 million in FTX Trading, the operator and owner of FTX.com.
However, Thoma Bravo, along with other investors, faced substantial losses following the collapse of FTX.
FTX’s downfall began when concerns arose over its financial practices, leading to mass withdrawals of funds by customers. The situation quickly escalated and FTX was unable to meet withdrawal demands, ultimately resulting in its bankruptcy declaration in November 2022.
The exchange took place later. exposed like a giant house of cards built on fraud, misappropriation of client funds and a complete lack of competent management and oversight.
In March of this year, the founder of FTX Sam Bankman-Frito was Sentenced to 25 years in prison after being found guilty of all charges.
Following FTX’s collapse, Thoma Bravo and other investors, including Paradigm Operations and Sequoia Capital, faced a lawsuit alleging they made misleading statements while promoting FTX and contributed to its misconduct.
Bravo said the company would no longer be involved in the cryptocurrency sector after losing its bet on FTX.
“Once you make a mistake and you burn yourself on something, our philosophy and mine is that you never touch it again,” Bravo explained.
Despite the setback with FTX, Bravo still believes in the potential of blockchain technology.
“I personally believe in blockchain technology. I think it’s a powerful way to do a lot of things and for a lot of use cases, and I’ve always believed that,” Bravo said.
FTX bankruptcy nears end with $16 billion fund recovery
The FTX bankruptcy saga nears its conclusion with Approximately $16 billion successfully recoveredwilling to reimburse customers in full, including interest.
The development follows Bankman-Fried’s incarceration at the Metropolitan Detention Center in Brooklyn. Her colleagues, Caroline Ellison, Nishad Singh and Gary Wang, have also pleaded guilty to federal crimes.
Amid these proceedings, the U.S. Bankruptcy Court for the District of Delaware is scheduled to hold a crucial hearing on October 7 to confirm FTX’s Chapter 11 Reorganization Plan.
If confirmed, the plan will allow more than 98% of customers and unsecured creditors to receive full reimbursement. However, the calculation of the reimbursement, which is Based on Bitcoin prices at the time of the crashhas faced criticism from creditors, who question the fairness of the proposed plan.
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