On Thursday, Venture capital firm Sequoia Capital informed its partners that it wrote off its entire $213.5 million investment in FTX as a complete loss.
He also pointed to reports that the Justice Department is investigating FTX, which the SEC and Commodity Futures Trading Commission are also probing.
“Some of these companies, you don’t even know where they’re headquartered. You don’t even know who works there. There’s absolutely no transparency,” Stark said. “The contagion is rapidly spreading amongst all of the various crypto ecosystem and that’s a serious problem for anybody that’s doing anything with crypto.”
