Daily Crunch: Sequoia Capital reverses its $210 million investment in crypto exchange FTX

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Tech reports are a lot of things, but it’s certainly not boring as the chaos around Twitter, crypto and layoffs continues. We’re just trying to hold on for dear life to try to make sense of it all. We think we’ve done a pretty decent job, and here we have a selection of what’s happened in the last 24 hours of tech. — Christina and haje.

TechCrunch’s top 3

  • Another domino falls: It was probably already a fiasco, but Binance decides not to buy FTX led Sequoia Capital to claim its minority stake in FTX as nothing more than unrealized gains, Connie reports. Letter to investors and all.
  • Meanwhile, in our other favorite brothel: Elon Musk was right when he tweeted that the company would do “a lot of stupid things”. Darrell reports on one of his last withdrawals (because they seem to be piling up before we even had time to breathe), where all of these accounts were promised this little blue tick in exchange for $8, but as you you all know, when you make fake accounts, it means you can’t have nice things.
  • More changes on Twitter: Another group of top dogs on Twitter have decided to leave the nest. This time it’s Information Security Officer Lea Kissner, followed by Compliance Officer Marianne Fogarty and Privacy Officer Damien Kieran. The latter two would have resigned today, according to Zack and Ingridwho teamed up to hunt down the details.

Startups and VCs

Denver-based venture capital firm SpringTime Ventures strays from its original goal on his home state of Colorado, despite being the only local fund in two of the state’s 10 unicorn societies, Beca reports. He’s also now able to grow his team by raising three times as much money for Fund II, giving SpringTime enough cash to allow its partners to finally pay themselves “a real salary.”

New crypto startups forged ahead at Alliance DAO’s demo day on Wednesday amid the FTX implosion. The most recent cohort, known as All9, for Alliance DAO, a community of Web3 accelerators and builders, presented their ideas on Wednesday during a demo dayexclusively covered by Jacqueline.

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

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

Picture credits: BrianAJackson (Opens in a new window) /Getty Pictures

Founding teams typically select a corporate structure like an LLC or S-Corp, but those hoping to exit for $10 million or more should consider launching as a C-Corporation Qualified Small Business (QSB), advises tax lawyer Vincent Aiello.

Under IRS Section 1202, founders who hold QSB stock for five years or more will be exempt from capital gains tax after a sale.

“This is a significant tax savings for entrepreneurs and small business investors,” says Aiello. “However, the effect of the exclusion ultimately depends on when the stock was acquired, the trade or business operated, and a variety of other factors.”

Three others from the TC+ team:

Tech Crunch+ is our membership program that helps founders and startup teams get a head start. You can register here. Use code “DC” to get 15% off an annual subscription!

Big Tech inc.

Elon Musk wants Twitter employees in the office and wants them to fight spam. These were some of messages that the new owner had for his social media team, Ivan writing. Oh, he also told them to be prepared for “hard times ahead,” which is always something you want to hear from your boss when it comes to the future of your job.

After the failure of the Binance deal, the founder of FTX Sam Bankman-Fried has new goals: end trading at Alameda Research and end its fundraising prowess, pot holder reports.

I promise, no more FTX or Twitter below:

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