Sino Global Capital, led by Matthew Graham, has initiated a legal claim of $67.3 million against FTX Trading Ltd. on behalf of Sino’s Liquid Value fund. This fund was introduced in collaboration with Sam Bankman-Fried in 2021, media reports said.
The objective of the fund was to secure $200 million in funding, primarily targeting high net worth individuals. This marked a departure for Sino, as it was the first instance where the company sought external capital through a formal fund structure.
In the promotional materials highlighting the fund’s offerings, FTX was portrayed as a “co-GP and anchor LP” in the presentation, with the potential to unlock substantial strategic value by exposing investors to Bankman-Fried’s array of tokens.
By January 2022, the fund had successfully garnered $90 million, with FTX participating as a key investor.
Initially, Sino Global indicated that its direct engagement with the FTX exchange was limited to a custody holding in the mid-seven figures. Bankman-Fried’s involvement in the fund was indirectly listed in SEC filings from 2022, alongside Alameda Research, its subsidiary Alameda Ventures, and Matthew Graham.
As of 2023, the fund is no longer registered with the SEC, although it remains operational under the regulatory oversight of the Cayman Islands Monetary Authority. A representative from Sino Global Capital had previously informed that the fund had placed significant emphasis on investing in infrastructure and gaming ventures.
Following the downfall of FTX, Sino issued a statement expressing their previous trust in FTX’s commitment to positive industry progress, and the subsequent disappointment in that misplaced trust.
In mid-July, Sino Global Capital announced the appointment of Constance Wang, former COO of FTX, and a key figure in Bankman-Fried’s fundraising efforts, as their head of gaming.
