Sino Global Capital, founded by Matthew Graham, has filed a $67.3 million claim against FTX Trading Ltd. on behalf of its Liquid Value fund. The fund, which was launched in 2021 in partnership with Sam Bankman-Fried, was initially targeting high net-worth individuals and aimed to raise $200 million. FTX was described in the fund’s marketing material as a co-GP and anchor LP with the potential to unlock significant strategic value through exposure to Bankman-Fried’s universe of tokens. As of January 2022, the fund had already raised $90 million, with FTX as an anchor investor.
At the time, Sino Global stated that its direct exposure to FTX exchange was confined to mid-seven figures held in custody. Bankman-Fried was listed as an indirect investor in the fund on SEC filings from 2022, alongside Alameda Research, subsidiary Alameda Ventures, and Graham. The fund is no longer registered with the SEC, but is still active with the Cayman Islands Monetary Authority.
Sino Global released a statement after the collapse of FTX, saying that it trusted FTX to be a good actor committed to pushing the industry forward. We deeply regret that misplaced trust. Shortly after, Sino Global announced the hiring of former FTX COO Constance Wang, once described as Bankman-Fried’s right hand in his fundraising drive, to be its head of gaming.