Singapore’s Temasek writes off $275M FTX investment, had misplaced belief in Sam Bankman-Fried

Singapore-owned concern money Temasek said it was penning disconnected its $275 cardinal concern successful the bankrupt crypto speech FTX,  according to a Nov. 17 property statement.

According to the fund, it had misplaced its “belief successful the actions, judgment, and leadership” of FTX laminitis Sam Bankman-Fried.

Temasek carried retired 8 months of owed diligence

Temasek revealed that it conducted an extended owed diligence process connected FTX, which lasted 8 months betwixt February and October 2021.

The state-owned fund’s investigations into the crypto exchange’s audited fiscal statement, regulatory compliance, cybersecurity, and different owed diligence efforts did not uncover immoderate reddish flags. Instead, it showed that the speech was profitable.

The concern steadfast besides highlighted that it had gathered qualitative feedback astir the institution and its absorption squad from radical acquainted with FTX.

Temasek said:

“The thesis for our concern successful FTX was to put successful a starring integer plus speech providing america with protocol agnostic and marketplace neutral vulnerability to crypto markets with a interest income exemplary and nary trading oregon equilibrium expanse risk.”

However, it conceded that portion its “due diligence processes whitethorn mitigate definite risks, it is not practicable to destruct each risks.”

Temasek has nary nonstop crypto exposure.

The Singapore-owned steadfast besides utilized the accidental to clarify that it has nary nonstop vulnerability to immoderate cryptocurrencies.

The firm’s blockchain concern enactment focuses connected fiscal marketplace work providers to the integer plus abstraction and infrastructure work providers.

It added that its FTX concern was 0.009% of its nett portfolio worth of S$403 cardinal ($293 billion) arsenic of Mar. 31, 2022.

Despite FTX’s failure, Temasek wrote:

“We proceed to admit the imaginable of blockchain applications and decentralized technologies to alteration sectors and make a much connected world. But caller events person demonstrated what we person identified antecedently – the nascency of the blockchain and crypto manufacture and the innumerable opportunities arsenic good arsenic important risks involved.”

Temasek joins Sequoia Capital, different concern steadfast that rapidly wrote off its ain $213.5 cardinal concern successful FTX.

The station Singapore’s Temasek writes disconnected $275M FTX investment, had misplaced content successful Sam Bankman-Fried appeared archetypal connected CryptoSlate.