Singapore Public Investment Company Temasek said on Thursday that it had decided to cancel its $275 million FTX investment, nearly a week after the cryptocurrency exchange filed for bankruptcy.
Once among the largest cryptocurrency exchanges in the world, FTX is led by CEO Sam Bankman-Fried, whose net worth peaked at $26.5 billion last year, before dropping to less than a dollar. billion as the company struggled to raise funds to cover up to $8 billion. in deficit amid massive withdrawals. The company has filed an application bankruptcy last week, burning at least 20 billionaires and several institutional investors including Temasek and Sequoia Capital.
Temasek said he invested $210 million in FTX International and another $65 million over two funding rounds in October last year and January this year. It is a small sum compared to the company’s portfolio which was valued at 403 billion Singapore dollars ($293 billion) in March this year, he added.
“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, would appear to have been wrong. placed,” Temasek said in a statement.
The collapse of FTX is confusing investors across the crypto space and creating chaos for regulators amid reports that client assets have been mismanaged and misused at the exchange.
“We expect the companies in which we invest to comply with their obligations under the laws and regulations of the jurisdictions in which they have investments or operations; respect sound corporate governance; and above all, always act ethically,” Temasek said. “We take corporate governance seriously, regularly engaging the boards and management of our companies in which we invest and holding them accountable for the activities of their companies.”