Crypto investment firm Paradigm has told its limited partners that it marked down its investment in now bankrupt exchange group FTX to zero following its liquidity meltdown, according to two persons familiar with the matter.

Paradigm, similar to FTX-backer Sequoia, told investors that it marked down its investment to zero. It invested $290 million in the group of firms tied to former Jane Street trader Sam Bankman-Fried. Despite its investment, Paradigm told investors that it is not a client of FTX and did not have crypto asset exposure to the firm.