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Paradigm’s Ambitious Fundraising Goal
Paradigm, a prominent player in crypto venture capital, is aiming for a substantial fundraising target for its latest investment fund. Sources familiar with the matter revealed that Paradigm is looking to raise between $750 million to $850 million, making it one of the industry’s most significant funds since 2022.
Background on Paradigm
Founded by Coinbase co-founder Fred Ehrsam and Sequoia Capital’s former partner Matt Huang, Paradigm is known as a “research-driven technology investment firm” that has supported projects like Uniswap, FTX, Cosmos, and Axie Infinity.
In 2021, Paradigm secured a $2.5 billion fund, which was the largest crypto investment fund at the time. Reports suggested that the firm was aiming for a $1 billion fund raise in September.
Paradigm’s Involvement with FTX
In October 2023, Matt Huang testified during the trial of FTX co-founder Sam Bankman-Fried, who received a 25-year prison sentence. Paradigm had previously invested $278 million in FTX but was unaware of the fraudulent activities that led to the exchange’s collapse, resulting in a complete write-off of the investment.
Paradigm is currently facing a class-action lawsuit from FTX investors, alleging that the firm, along with Sequoia and Thoma Bravo, inadvertently supported FTX’s legitimacy through their financial backing.
Support for Coinbase Against the SEC
Paradigm has filed an amicus curiae brief in support of Coinbase’s legal battle against the Securities and Exchange Commission (SEC). The firm criticizes the SEC’s regulatory approach as punitive and lacking clear guidelines, making compliance challenging for crypto firms.
The conflict between Coinbase and the SEC began in July 2022 when the exchange sought regulatory clarity, leading to the current lawsuit.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
