Key Takeaways
- Thoma Bravo has withdrawn from crypto investments after its FTX bet fell flat.
- The company’s founder maintains a belief in blockchain technology.
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Thoma Bravo, managing approximately $160 billion in assets under management, has decided to permanently withdraw from the crypto market following its ill-fated investment in FTX, said Orlando Bravo, the head of the top private equity firm, in a recent interview with CNBC.
Miami-based tech investor was part of a group of investors that led a $900 million investment in FTX in 2021, which valued the exchange at approximately $18 billion. The company invested roughly $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 about its financial practices surfaced, leading to the massive withdrawal of funds by customers. The situation escalated quickly, with FTX unable to meet the withdrawal demands, ultimately resulting in its bankruptcy filing in November 2022.
The exchange was later exposed as a massive house of cards built on fraud, misappropriation of customer funds, and an utter lack of competent management and oversight.
In March this year, FTX’s founder Sam Bankman-Fried was sentenced to 25 years in prison after being convicted guilty of all charges.
Following the collapse of FTX, Thoma Bravo and other investors, including Paradigm Operations and Sequoia Capital faced a…
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