A class-action lawsuit against eighteen leading venture capital (VC) investment firms, including Temasek, Sequoia Capital, Sino Global, Softbank, has been filed recently in the United States District Court for the Northern District of California due to their association to the since defunct FTX crypto exchange.
According to the claim, these VCs used their economic influence and monetary means to extend their malicious intent behind the heightening the reach and scale of the the exchange. They have perpetuated, schemed for and facilitated the multi-billion dollar fraud and deception that abounded FTX for their own economic gain, the suit purports.
The civil suit relates particularly to how even after they allegedly performed stringent consumer safety verifications into the finances of FTX, Temasek issued a comment indicating no red flags or preventive alerts.
Subsequent to its collapse, in the summer of 2022, not only did Temasek repudiate their entire venture but also took a retaliatory measure impacting responsibility positioned officers. This era also initiated a rough temper assigned towards crypto ventures by many investment entities, deflating the value of many in this sector for many months.
It also brings into question the fall out from failed direct oversight and incompetency to the Singapore benefactor both approving this investment discreetly as well its losses unduly.