Users of the now-defunct cryptocurrency exchange FTX have reportedly targeted the financiers who marketed the platform, arguing that their efforts provided an “air of legitimacy” to the now-defunct exchange in a situation that has been described as “complicated.” by a cryptocurrency lawyer.

According to an article published by Bloomberg on February 15, FTX investors had filed a class action lawsuit on February 14 against venture capital firm Sequoia Capital, as well as private equity firms Thoma Bravo and Paradigm.

Investors said the companies were touting “their own investments” in FTX, amounting to hundreds of millions of dollars.

The companies were claimed to have engaged in a promotional marketing campaign in 2021, which investors say gave the discredited cryptocurrency exchange an “air of credibility.”

The three companies were all investors in FTX $900 million Series B round, which took place in July 2021. This was the largest raise in cryptocurrency history, and individual partners in each of the three companies spoke favorably of former FTX CEO, Sam Bankman-Fried, at the event.

Matt Huang, one of Paradigm’s co-founders, issued a statement following the fundraising announcement in July 2021, calling Bankman-Fried a “unique” entrepreneur who is “incredibly ambitious.”

He went on to say that despite the fact that Sequoia did not do its due diligence to a particularly high standard, the company is not “accountable to others.”

The fact that there was no evidence to suggest Sequoia was not “playing within regulatory guidelines” led Hennessy to assume it was a “buyer beware” issue.

According to a separate report published by Bloomberg on February 15, it was revealed that in the same court filing, Sam Bankman-Fried and his father, along with former FTX and Alameda Research executives named Caroline Ellison, Nishad Singh and Gary Wang, all received a subpoena, which is an order that requires a person to appear in court to provide additional evidence.

It was said that Sam Bankman-Fried is likely to appear in court on February 17, while Joseph Bankman, Ellison, Wang and Singh will appear in court on February 16.