Singapore’s state-owned investor Temasek introduced that it has determined to put in writing down its full funding in collapsed cryptocurrency trade FTX, no matter the end result of its chapter safety submitting.
Temasek had invested US$210 million for a minority stake of ~1% in FTX Worldwide, and one other US$65 million for a minority stake of ~1.5% in FTX US, throughout 2 funding rounds from October 2021 to January 2022.
The investor added that the price of its funding in FTX was 0.09% of its internet portfolio worth of S$403 billion as of 31 March 2022.
Temasek claims to have accomplished an “intensive due diligence course of on FTX” which took roughly 8 months.
The investor additionally sought to additional distance itself from FTX’s evolving fiasco by stating that it didn’t have a board seat since Temasek held solely a minority stake within the crypto trade.
Temasek stated in a press release,
“There are inherent dangers every time we make investments, divest, or maintain our property, and wherever we function. Whereas this write down of our funding in FTX is not going to have important affect on our general efficiency, we deal with any funding losses severely and there will probably be learnings for us from this.
We’ll proceed to stay prudent and train warning at the same time as we discover alternatives which might be aligned with our structural developments, to ship sustainable returns over the long run for our general portfolio.”
Temasek follows within the footsteps of Japanese funding conglomerate SoftBank which invested slightly below US$100 million in FTX.
In the meantime, crypto-focused enterprise capital agency Paradigm’s Co-founder and Managing Companion Matt Huang expressed “deep remorse” for having invested round US$278 million within the fallen crypto trade. Paradigm was additionally compelled to put in writing down its funding in FTX to US$0.
