Singapore’s Temasek cancels a $275 million investment in FTX • TechCrunch

FTX investors are continue to deal with the fallout from the bankruptcy of the cryptocurrency exchange. In a statement today, Temasek, Singapore’s government-owned investment firm, said it has listed its entire investment in FTX, “irrespective of the outcome of FTX’s bankruptcy filing.”

Temasek invested $210 million in FTX International, giving it a minority stake of about 1%. It also invested $65 million in a minority stake of about 1.5% in FTX US, in two rounds of financing from October 2021 to January 2022. The company said the total cost of its investment was 0.09 % of net worth of his SGD$403 billion portfolio (about $293 billion USD).

Temasek noted that his investment in FTX was not an investment in cryptocurrency. “To clarify, we currently have no direct exposure to cryptocurrency,” he said.

Instead, the reason he invested in FTX was because he wanted to support a “leading digital asset exchange that gives us market-neutral, agnostic exposure to crypto markets with a fee-based revenue model and no trading or risk sheet.” balance”.

He also said his due diligence process for FTX took around 8 months, from February to October 2021, and involved a review of FTX’s audited financial statement, which he said showed the exchange was profitable.

But with FTX’s collapse, Temasek now says that “it is evident 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 conversations with others, would appear to have been misplaced.”

Temasek’s announcement comes just days after SoftBank said it was writing down its $100 million investment in FTX, once valued at $32 billion. Sequoia also said it was writing down its other investments.

FTX’s other investors include BlackRock, Tiger Global, Insight Partners, and Paradigm.

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