>The Series B follows the company raising $124 million in a Series A round in 2021. The Series B round was led by Sam Bankman-Fried, CEO of FTX. The round also included participation from Caroline Ellison, Jim McClave, Nishad Singh, Jaan Tallinn, and the Center for Emerging Risk Research (CERR).
For what it's worth, when MtGox blew up, it took years to recover and distribute what Bitcoins were left. Everyone was frozen out, but when they finally got their money back it was worth far more than when MtGox blew up. I have friends who are sitting on millions thanks to this. They probably would have sold on the way up or during one of the crashes. But thanks to the illiquidity during bankruptcy, they're far better off now.
Sometimes funds don't invest because of the product or the company, sometimes it's just to take over another investor's position (or make the other investor's position look better).
When things go really wrong, the ultimate solution is to use the company that has had a successful exit to buy a failing company.