SoftBank Writes Off $100 mln Investment in FTX

After the collapse of the US crypto exchange, many investors are questioning the reasons for so many high-profile investment firms giving the company a collective $2 billion with apparently so little due diligence.

The Japanese investment conglomerate SoftBank is just one of many firms affected by the FTX collapse, after giving the company about $100 million in a $400 million funding round in January, which increased the company's valuation to as much as $32 billion.

SoftBank's Vision Fund 2 revealed that this investment worth of $100 million is now marked down to zero with the conglomerate saying “it would not face a material markdown in the value of its stake.”

Former SoftBank COO Marcelo Claure that stepped down in late January believed the firm didn't completely understand what exactly it was investing in.

It taught me one more time that we should NEVER invest because of FOMO and we should always 100% understand what we are investing in,

he tweeted after the FTX collapse.