BlackRock CEO Fink Says The Asset Manager Invested This Many Millions In FTX

BlackRock BLK Larry Fink invested $24 million in FTX through a fund of funds it administers, CEO Larry Fink said Wednesday. 

Although there were some inappropriate actions at the cryptocurrency exchange FTX, the technology underlying cryptocurrencies is still essential, Fink said, according to a Reuters report. 

"We're going to have to wait to see how this all plays out (with FTX). I mean, right now we can make all the judgment calls, and it looks like there were misbehaviors of major consequences," Fink said, speaking at an event hosted by the New York Times Dealbook.

Cryptocurrency lender BlockFi on Tuesday disclosed that it filed for bankruptcy as a result of its exposure to FTX, which had saved the company from failure during the industry's summer 2022 liquidity crisis.

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Did FTX Mislead Investors, BlackRock?

Fink did not, however, state whether he thinks FTX founder Sam Bankman-Fried and his group misled BlackRock and other investors.

BlackRock's ability to recoup its investment is uncertain.

"Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here," John Ray, the new CEO of FTX in charge of the restructuring, wrote in a 30-page document submitted to the U.S. Bankruptcy Court in the District of Delaware.

BlackRock is not the first institutional investor to declare an investment in the Bankman-Fried enterprise, which included the cryptocurrency trading hedge fund Alameda Research.

Venture capital company Sequoia Capital informed its limited partners in a letter dated Nov. 9 that it now views its $210-million investment in FTX as a complete loss worth zero. 

"Based on our current understanding, we are marking our investment down to $0,” the Silicon Valley-based firm said. "The fund remains in good shape."

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