Bloomberg: FTX investors file class action lawsuit against venture capital firms such as Sequoia Capital, Thoma Bravo, and Paradigm

ChainCatcher news, according to Bloomberg, a class action lawsuit filed on behalf of investors accuses venture capital and private equity firms, including Sequoia Capital, Thoma Bravo, and Paradigm, of participating in a promotional marketing campaign in 2021 to promote their own hundreds of millions of dollars investment in the FTX entity.

Investors claim this added a sense of "legitimacy" to FTX, which ultimately filed for bankruptcy in November. Investors accuse the venture capital firms of violating state and federal laws, including false statements, false advertising, and civil conspiracy. (source link)