Sequoia Capital writes off its $210 million investment in crypto exchange FTX • TechCrunch

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Technical reporting is a lot of things, but it certainly isn’t boring as the chaos around Twitter, crypto and layoffs continues. We’re just trying to live our lives trying to make sense of it. We think we’ve done a pretty good job, and here’s a pick of what’s been happening in technology in the last 24 hours. — Christine and He came.

The TechCrunch Top 3

  • Another domino falls: It was probably already a fiasco, but Binance decided not to buy FTX and led Sequoia Capital to claim its minority stake in FTX as nothing more than some unrealized gains, Connie reports. Investor letter and everything.
  • Meanwhile, at our other favorite hot mess: Elon Musk was right when he tweeted that the company would do “a lot of stupid things”. darrell reports of one of the latest takebacks (as they seem to be piling up before we even have time to breathe), with all of these accounts being promised that little blue check in exchange for $8, but as you all know, when making your fake accounts means we can’t have nice things.
  • More Twitter changes: Another group of top dogs on Twitter decided to leave the litter. This time it’s Chief Information Security Officer Lea Kissner, followed by Chief Compliance Officer Marianne Fogarty and Chief Privacy Officer Damien Kieran. The latter two reportedly resigned today, according to Bag and Ingridwho worked together to find out the details.

Startups and VC

Denver-based VC firm SpringTime Ventures is moving away from its original focus on its home state of Colorado, despite being the only local fund in two of the state’s 10 unicorn companies, Becca reports. It is also now able to expand its team thanks to three times the money for Fund II, giving SpringTime enough cash on hand to finally let its partners pay “a real salary.”

New crypto startups sprang up during Alliance DAO’s demo day on Wednesday amid the FTX implosion. The most recent cohort, known as All9, for Alliance DAO, a web3 accelerator and builder community, showcased their ideas at a demo day on Wednesday, covered exclusively by Jacquelyn.

And here are a few other things that caught our beady eyes today:

Use IRS Code Section 1202 to Sell Your Million Dollar Startup Tax Free

Piggy bank with sunglasses on the beach by the sea

Image Credits: BrianAJackson (Opens in a new window) / Getty Images

Founding teams usually choose a corporate structure like an LLC or S-Corp, but those hoping to quit for $10 million or more should consider starting as a Qualified Small Business (QSB) C-Corporation, advises tax attorney Vincent Aiello.

Under IRS code section 1202, founders who hold QSB stock for five years or more are exempt from paying capital gains tax after a sale.

“It represents a significant tax benefit for entrepreneurs and small business investors,” says Aiello. “However, the effect of the exclusion ultimately depends on when the shares were acquired, the trade or company being operated, and several other factors.”

Three more from the TC+ team:

TechCrunch+ is our membership program that helps founders and startup teams stay ahead of the curve. You can register here. Use code “DC” for a 15% discount on an annual subscription!

Big Tech Inc.

Elon Musk wants Twitter employees in the office and wants them to fight spam. Those were some of the messages the new owner had for his social media staff, Ivan writes. Oh, he also told them to be ready for “tough times to come” which is always something you want to hear from your leader regarding the future of your job.

After the Binance deal failed, FTX founder Sam Bankman-Fried has some new focal points: ending trading at Alameda Research and ending his fundraising skills, manish reports.

We promise, no more FTX or Twitter below:

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