All about Sino Global’s $67 million claim against FTX

• Sino Global Capital, led by Matthew Graham, sued FTX for losses worth $67.3 million in its Liquid Value fund.
• The 2021 partnership between Sino Global and FTX is under scrutiny.

Sino Global Capital, led by Matthew Graham, has initiated a legal claim against FTX Trading Ltd., aiming to secure $67.3 million for its Liquid Value fund. This step is a direct response to the collapse of FTX, which impacted Sino Global’s investments.

The intricate relationship between these entities introduced layers of complexity to the unfolding situation.

In 2021, Sino Global Capital embarked on a partnership with Sam Bankman-Fried to establish the Liquid Value fund. The initiative strategically targeted high net worth individuals, with an ambitious fundraising goal of $200 million.

Remarkably, this marked a pivotal juncture for Sino Global, signifying its foray into attracting external capital. Collaborating with FTX further enhanced the project’s uniqueness and potential.

Crypto giants in legal crossfire: Multi-million dollar claim

The fund’s marketing campaigns portrayed FTX as a “co-GP and anchor LP,” with the explicit goal of delivering “significant strategic value” through exposure to SBF’s range of tokens. This innovative concept intrigued potential investors, who found it captivating.

Notably, the fund had already secured an impressive $90 million in investments by January 2022.

This alignment of interests between Sino Global and FTX is underscored by SBF’s inclusion as an indirect investor alongside Alameda Research and its subsidiary, Alameda Ventures.

These meticulous details were formally documented in 2022 SEC filings, solidifying the partnership’s dynamics.

Sino Global’s unique investment emphasis on infrastructure and gaming introduces a layer of complexity to its position. Following the collapse of FTX, Sino Global openly voiced regret for having placed trust in an entity that seemed devoted to advancing the industry.

This candid admission sparks more extensive discussions regarding trust, accountability, and the unforeseen dynamics that have the potential to reshape the intricate crypto ecosystem.

Of particular intrigue is the appointment of Constance Wang, the former Chief Operating Officer (COO) of FTX, by Sino Global. Wang’s transition from Sam Bankman-Fried’s “right hand” to head of gaming at Sino Global carries profound implications. This shift may imply a re-evaluation or an effort to leverage Wang’s expertise in navigating the aftermath of FTX’s downfall.

The interplay of intricate partnerships, financial ventures, and evolving regulations further underscores the multifaceted nature of this narrative.