The CEO of BlackRock said that the investment was modest and unrelated to BlackRock’s primary business.
Larry Fink, the chief executive officer of BlackRock, said that the asset management had lost $24 million on its investment in FTX.
Fink also explained that the investment was modest and unrelated to Blackrock’s primary business. Fink revealed the defeat in an interview with New York Times writer Andrew Sorkin on November 30.
Sorkin, speaking after Fink’s confirmation, said that several huge companies, including Blackrock and Sequoia Capital, had invested in FTX but had ultimately lost money.
“It seems nobody was supervising the business.”Sorkin said and inquired about Fink’s stance on the issue.
Fink said that he did not believe anybody was “watching the stores.” The proper research was undoubtedly performed.
Yet Fink also admitted the possibility that Sequoia was misled throughout its investigation. He said:
“Could the world’s Sequoias have been misled? Could they have taken other actions? Were we deceived about the tiny investment we made? Sure. But until we get additional information, I will refrain from speculation.”
Sequoia Capital disclosed a $200 million stake in FTX, which it wrote down to zero on November 10.