A Samsung investment company participated in a $420 million funding round for FTX in 2021, which is a loss now amid the exchange’s bankruptcy.

Samsung Next, an investment subsidiary of the technology giant, has become the latest institution to admit a financial loss to FTX’s demise early this month. However, there are no operational disruptions from the exposure.

Samsung Next Confirm Loss to FTX

According to the report, Samsung Next was among the investors in FTX’s Series B-1 funding round 2021. About 69 investors participated in the round, including Ontario Teachers’ Pension, Temasek, and Sequoia Capital, all of which have already confirmed exposure to the bankrupt crypto exchange.

FTX secured about $420 million from investors during the funding round. Samsung’s investment size was not disclosed. It said the investment in FTX was not significant, and it does not affect its overall operation. “The amount invested in FTX is small compared to Samsung Next’s total operating funds, so it does not affect its operation,” according to the report.

Following the investment in October 2021, FTX’s market valuation soared to $25 billion, but all have gone down the drain following the exchange’s insolvency in November. In a bankruptcy filing, the exchange listed over 100,000 creditors whose investments are apparently trapped. Even for Samsung and other creditors, the path to investment recovery may be difficult.

FTX’s Investors Write Down Millions of Investments

Some of the affected investors are beginning to re-evaluate their investment in cryptocurrency.

On November 17th, Temasek, the Singapore state-owned investment firm, marked down its $275 million investment in the bankrupt exchange, which represents 0.09% of its net portfolio. Sequoia Capital also wrote down its $214 million investment before FTX filed for bankruptcy protection.

In a new development, FTX’s new chief John Ray some of FTX’s solvent subsidiaries will resume “ordinary course cash payments of salaries and benefits to our remaining employees around the world.”

（By Ibiam Wayas）