The CEO of the worlds largest asset management firm, BlackRock, believes that the reason why FTX failed is because it created its own FTX Token (
Fink admitted that BlackRock had a $24 million investment in FTX, but refused to speculate on allegations that they and other venture capital firms such as Sequoia Capital had failed to do the proper due diligence on FTX.
”Right now we can make all the judgment calls that it looked like there was some misbehavior of major consequence […] if you look at the Sequoia’s of the world they’ve had unbelievable returns over a long period of time, I am sure they did due diligence.”
BlackRock has been an active investor in the crypto industry since 2020. Its latest move was revealed on Nov. 3, in which it announced it would be managing USD Coin (UDSC) issuer Circle’s reserve fund.
Meanwhile, on Sept. 27, it announced the launch of an ETF giving investors exposure to 35 blockchain-related companies.