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Paradigm, a prominent entity in crypto venture capital, is pursuing a notable fundraising objective for its new investment fund.
A recent report from Bloomberg indicates that sources familiar with the situation have revealed Paradigm is aiming for a target between $750 million and $850 million. Should it be finalized at $750 million, this fund would mark the largest in the industry since 2022, following Andreessen Horowitz’s $4.5 billion crypto fund launched in May.
Established by Fred Ehrsam, a co-founder of Coinbase, and Matt Huang, a former partner at Sequoia Capital, Paradigm is described as a “research-driven technology investment firm” that supports projects such as Uniswap, FTX, Cosmos, and Axie Infinity, among others.
In 2021, Paradigm raised a $2.5 billion fund, which was the largest crypto investment fund at that time. Reports from The Information in September suggested that Paradigm was aiming for a $1 billion fundraising effort.
Paradigm and FTX’s Downfall
In October 2023, Huang testified during the trial of Sam Bankman-Fried, co-founder of FTX, who has been sentenced to 25 years in prison.
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“I never thought what I was doing was illegal,” Bankman-Fried recently stated to ABC News. “However, I aimed to hold myself to a high standard, and I certainly did not achieve that standard.”
Paradigm had previously invested $278 million in FTX. Huang revealed that Paradigm was unaware of the fraudulent activities that led to the exchange’s bankruptcy and subsequently wrote off its investment in FTX in full.
Paradigm is currently involved in a class-action lawsuit filed by FTX investors. The lawsuit claims that Paradigm, along with Sequoia and Thoma Bravo, inadvertently validated FTX’s legitimacy through their financial support.
Backing Coinbase’s Lawsuit Against SEC
Paradigm has submitted an amicus curiae brief in favor of Coinbase’s ongoing legal dispute with the Securities and Exchange Commission (SEC), supporting the exchange’s pursuit of clearer regulatory guidelines.
In the submitted document, Paradigm criticized the SEC’s regulatory approach as excessively punitive and uncooperative regarding rulemaking. The firm emphasized the difficulties of achieving compliance under the SEC’s current enforcement-driven regulatory framework.
The conflict with the SEC began in July 2022 when Coinbase sought clarity on digital asset regulations, which the SEC subsequently denied, leading to the current lawsuit initiated by Coinbase.
The post Paradigm Targets Over $750 Million in Upcoming Fundraising Effort appeared first on Cryptonews.
