Sequoia Capital, ‘Inspector Gadget’ creator hit by FTX class-action lawsuit 

Quick Take

  • Venture capital firm Sequoia Capital and the creator of “Inspector Gadget” were named in a lengthy class action lawsuit filed by an FTX customer.
  • Connor O’Keefe claims defendants in the lawsuit knew about the alleged fraud occurring at FTX, but “did not care” to stop it.

Sequoia Capital, the creator of “Inspector Gadget,” Signature Bank and others linked to defunct crypto exchange FTX were slapped with a class action lawsuit this week, which alleges the defendants knew about the alleged fraud at the company and “did not care.” 

Connor O’Keefe, who has funds frozen on FTX, filed the lawsuit this week. He claims the parties named in the suit were aware of wrongdoing by former FTX CEO Sam Bankman-Fried, who is facing a litany of criminal charges in connection with his role at the exchange. 

Though FTX customers could not see that SBF was misappropriating their deposits on vice, vanity and speculative personal investments, defendants had full view,” the lawsuit said. “Through diligence on FTX and close ties with SBF, defendants learned that FTX was operated as SBF’s personal piggy bank, that as qu