BlackRock CEO Fink invests $24 million in FTX

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BlackRock CEO Fink invests $24 million in FTX

BlackRock BLK Larry Fink invested $24 million in FTX through a fund of funds it administers, according to CEO Larry Fink on Wednesday.

Fink said that the technology underlying cryptocurrencies is still essential, even though there were some inappropriate actions at the FTX exchange.

BlockFi filed for bankruptcy on Tuesday because of its exposure to FTX, which saved the company from being hacked during the summer 2022 crisis.

BlackRock's ability to recoup its investment is uncertain.

In a 30-sided document submitted to the U.S. Bankruptcy Court in the District of Delaware, never has I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information.

BlackRock is not the first institutional investor to declare an investment in the Bankman-Fried enterprise, which included the criptocurrency trading hedge fund Alameda Research.

Sequoia Capital told its limited partners in a letter dated November 9 that it now views its $210 million investment in FTX as a complete loss worth zero.

The Silicon Valley-based firm said that they're marking their investment down to $0 based on our current understanding. The fund is in good shape. Next: Crypto Winter Chills Kraken, 30% of staff gets cut after 'Quick Scale Up'