Singapore-owned investment fund Temasek said it was writing off its $275 million investment in the bankrupt crypto exchange FTX, according to a Nov. 17 press изјава.
According to the fund, it had misplaced its “belief in the actions, judgment, and leadership” of FTX founder Sam Bankman-Fried.
Temasek carried out eight months of due diligence
Temasek revealed that it conducted an extensive due diligence process on FTX, which lasted eight months between February and October 2021.
The state-owned fund’s investigations into the crypto exchange’s audited financial statement, regulatory compliance, cybersecurity, and other due diligence efforts did not reveal any red flags. Instead, it showed that the exchange was profitable.
The investment firm also highlighted that it had gathered qualitative feedback about the company and its management team from people familiar with FTX.
Temasek said:
„Теза за нашу инвестицију у ФТКС је била да инвестирамо у водећу размену дигиталних средстава која нам омогућава да будемо агностички агностички и тржишно неутрална изложеност крипто тржиштима са моделом прихода од накнада и без ризика трговања или биланса стања.
However, it conceded that while its “due diligence processes may mitigate certain risks, it is not practicable to eliminate all risks.”
Temasek has no direct crypto exposure.
The Singapore-owned firm also used the opportunity to clarify that it has no direct exposure to any cryptocurrencies.
The firm’s blockchain investment activity focuses on financial market service providers to the digital asset space and infrastructure service providers.
It added that its FTX investment was 0.009% of its net portfolio value of S$403 billion ($293 billion) as of Mar. 31, 2022.
Despite FTX’s failure, Temasek wrote:
„Настављамо да препознајемо потенцијал блокчејн апликација и децентрализованих технологија за трансформацију сектора и стварање повезанијег света. Али недавни догађаји су показали оно што смо раније идентификовали – настанак индустрије блокова и крипто индустрије и небројених могућности, као и значајних ризика.
Temasek joins Sequoia Capital, another investment firm that quickly wrote off its own $213.5 million investment in FTX.
Source: https://cryptoslate.com/singapores-temasek-writes-off-275m-ftx-investment-had-misplaced-belief-in-sam-bankman-fried/