Singapore Government’s Temasek Cancels $275M Investment In Collapsed FTX Crypto Exchange

Singapore government’s Temasek wrote down the full value of his $275 million investment in bankrupt crypto exchange FTX. “Our belief in the actions, judgment and leadership of Sam Bankman-Fried…seems to have been misplaced,” Temasek admitted.

Temasek’s investments in FTX are now worth $0

Singapore government Temasek Holdings issued a statement on Thursday regarding its investments in FTX after the cryptocurrency exchange application was filed. bankruptcy.

Temasek is a global investment firm headquartered in Singapore with a portfolio valued at 403 billion Singapore dollars ($294 billion). Temasek was established to hold and manage assets previously held by the Singapore government; the government is the sole shareholder of Temasek.

The investment company explained:

We invested US$210 million for a c. 1% minority stake in FTX International, and invested US$65 million for a c.1.5% minority stake in FTX US, across 2 financing rounds of October 2021 to January 2022. The cost of our investment in FTX was 0.09% of the net value of our S$403 billion portfolio as of March 31, 2022.

“There have been misperceptions that our investment in FTX is an investment in cryptocurrencies. To clarify, we currently have no direct exposure to cryptocurrencies,” the company pointed out.

Temasek went on to explain that “as with all investments, we conducted an extensive due diligence process on FTX, which lasted approximately 8 months from February to October 2021”.

The company added, “Reports have since surfaced that client assets have been mismanaged and misused in FTX. If these statements are true, it amounts to gross misconduct or fraud at FTX. All of this is currently under investigation by regulators. Temasek continued:

It is apparent from this investment that perhaps our belief in the actions, judgment and leadership of Sam Bankman-Fried, formed from our interactions with him and the opinions expressed in our discussions with others, appears to have been misplaced.

Temasek added:

Given FTX’s financial condition, we have decided to write down our entire investment in FTX regardless of the outcome of FTX’s bankruptcy protection filing.

“There are inherent risks whenever we invest, divest or hold our assets, and wherever we operate. While this impairment of our investment in FTX will not materially impact our overall performance, we treat any investment loss seriously and will learn from it,” the company concluded.

Keywords in this story

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What do you think of Temasek’s explanation of his FTX investments? Let us know in the comments section below.

Kevin Helms

An economics student from Austria, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests include Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

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