Alaska Permanent Fund had invested millions in now-broke FTX crypto exchange (2024)

The Alaska Permanent Fund is one of the institutional investors that had exposure to the bankrupt cryptocurrency exchange FTX, which filed for bankruptcy on Friday, along with 134 of its associated companies. There will be losses.

The Alaska Permanent Fund’s investments were through Sequoia Capital, headquartered in Menlo Park, Calif., and other venture capital firms. Sequoia sent a letter to its limited partners on Wednesday marking down the value of its investments in FTX to $0.

The Alaska Permanent Fund had committed as much as $200 million to Sequoia’s Global Growth Fund III, according to Pensions and Investments, an online blog. It was that fund that made the investment of up to $214 million of pooled money from various investors into FTX; thus, the Alaska Permanent Fund’s exposure was not the full amount.

Other institutional investors that had money tied up in FTX include the Ontario, Canada Teachers’ Pension Plan, and the Washington State Investment Board. The Ontario Teachers’ Pension Plan had $95 million invested inFTX Trading andFTXUS, but reports that the loss will have a limited impact on the plan.

Sequoia Capital removed its glowing profile of FTX founder Sam Bankman-Fried from its website last week and replaced it with a markdown notice.

“A liquidity crunch has created solvency risk for FTX and its future is uncertain. Many have been affected by this unexpected turn of events. For Sequoia, our fiduciary responsibility is to our LPs. To that end, we sharedthis letterwith them today regarding our investment in FTX. For FTX, we believe its fiduciary responsibility is first to its customers, and second to its shareholders. As such, FTX is exploring all opportunities to ensure its customers are able to recover their funds as quickly as possible.“

Alaska Permanent Fund had invested millions in now-broke FTX crypto exchange (2)

FTX users could be outas much as$8 billion in losses, after it appears that FTX CEO Sam Bankman-Fried used money from customer accounts to transfer to other accounts and fund risky investments. Those companies include FTX-owned Alameda Research, which owes FTX some $10 billion.

The loss on FTX is offset by the fund’s roughly $7.5 billion realized and unrealized gains, Sequoia said in its letter.

“We are in the business of taking risk. Some investments will surprise to the upside, and some will surprise to the downside. We do not take this responsibility lightly and do extensive research and thorough due diligence on every investment we make,” the letter explained, signed “Team Sequoia.”

“At the time of our investment in FTX, we ran a rigorous due diligence process,” the company said, although that is now in question, since it appears the CEO of FTX was running a Ponzi scheme to fund his political favorites in the Democrat Party.

Read: Meet young crypto billionaire who wants to change political fundraising

RIP, FTX: Democrat Ponzi scheme whose founder conned billions and gave millions to leftist candidates like Peltola

In 2018, the then-$81 billion Alaska Permanent Fund Corp.committed $200 million to Sequoia’s Global Growth Fund III, and the $161 billionWashington State Investment Boardretirement system approved an allocation ofup to $350 million, according to Pensions and Investments.

FTX founder and CEO Sam Bankman-Fried resigned Friday as CEO, and about 130 companies affiliated with FTX also began voluntary bankruptcy proceedings, according to FTX’s website.

Those companies that are also embroiled in the bankruptcy include:

1. Alameda Aus Pty Ltd

2. Alameda Global Services Ltd.

3. Alameda Research (Bahamas) Ltd

4. Alameda Research Holdings Inc.

5. Alameda Research KK

6. Alameda Research LLC

7. Alameda Research Ltd

8. Alameda Research Pte Ltd

9. Alameda Research Yankari Ltd

10. Alameda TR Ltd

11. Alameda TR Systems S. de R. L.

12. Allston Way Ltd

13. Altalix Ltd

14. Analisya Pte Ltd

15. Atlantis Technology Ltd.