Sino Global Capital, a Chinese cryptocurrency venture capital firm, has spoken out about the extent of its exposure to the FTX exchange.
In a letter posted on Twitter on November 15, the company claimed that its direct exposure to FTX, the exchange, “was confined to mid-seven figures held in custody.”
However, the company did not give a precise amount. The letter also stated that Sino is still in business and is still funding new businesses.
In October 2021, Sino made its first fund accessible to outside investors. Since FTX disclosed it was experiencing a liquidity problem and then filed for bankruptcy, speculation over Sino’s positions has been growing.
It is well known that Sino is a significant backer of FTX and FTX-adjacent projects like Solana and Serum.
In addition, the company said in a letter,
“Our investment in the equity of FTX was made prior to the launch of our fund and we did not invest any LP capital into FTX.”
Additionally, it was made clear that the company had not adopted any short-term trading or leveraged trading strategies in relation to investment positions.
According to the letter, the company stated that they trusted FTX to be a good actor committed to pushing the industry forward. Furthermore, the company added that they regret that betrayed trust very much.