The World’s Largest Asset Manager Was Also Exposed to FTX

BlackRock – the largest asset manager in the world – lost millions of dollars inside FTX, according to CEO Larry Fink.

• The BlackRock chief spoke at The New York Times Dealbrook Summit on Wednesday, confirming that his firm held $24 million within the insolvent exchange. The money was from a “fund of funds,” and not a core part of BlackRock’s business. 
• Interviewer Andrew Sorkin asked Fink why BlackRock and other firms seemingly didn’t “mind the store,” performing due diligence before investing in it. 
• Fink denied the allegation, but acknowledged that FTX may have engaged in “some misbehaviors of major consequences.” He also noted that Sequoia, a technology-focused VC firm, was left in the same boat.
• “I am sure they did the due diligence,” said Fink. “Could they have been misled? Could they have done other things? Could we have been misled? Sure… but until we have more facts I’m not gonna speculate.
• A wide array of high-profile celebrities, businesses, and investors were caught in FTX’s collapse, including Steph Curry and Tom Brady. Shark Tank star Kevin O’Leary lost money in the firm, but has nonetheless claimed he would still hire Sam Bankman-Fried as a trader if he had the chance. 
• BlackRock partnered with Coinbase in July to announce the launch of a Bitcoin Trust fund, which crypto-proponents viewed as a sign of large institutional interest in the sector.