Singaporean Investment Firm Temasek Divests $275 Million Investments in Bankrupt FTX By DailyCoin

© Reuters. Singaporean investment firm Temasek divests $275 million in investments in bankrupt FTX

Temasek, a Singaporean venture fund, has written off its $275 million investment in embattled cryptocurrency exchange FTX, “regardless of the outcome of FTX’s bankruptcy protection filing.”

Temasek delisted FTX investment

In a statement on Thursday, November 17, Singaporean state-owned investment firm Temasek said it would cancel its $275 million investment in FTX, a week after the exchange was hit by a liquidity crunch.

Temasek invested $210 million in a minority stake of approximately 1% in FTX International, and another $65 million in a minority stake of approximately 1.5% in FTX US. The investments were implemented through two funding rounds from October 2021 to January 2022.

Temasek said it did 8 months of due diligence before investing. However, it has now decided to dispose of its investment in FTX “regardless of the outcome of FTX’s bankruptcy protection filing.”

FTX Investment is a small part of Temasek’s portfolio

According to Temasek, the total cost of its investment in the bankrupt cryptocurrency exchange is negligible, representing just 0.09% of its $403 billion portfolio net worth as of the end of March 2022.

The company notes that the investment will not have a significant impact on its performance. Temasek added that there were misperceptions about their investment in FTX and that the investment firm had no direct exposure to cryptocurrency.

on the flip side

  • The implosion of FTX is not an indictment against cryptocurrency and blockchain, Temasek said, but rather a weak bet on Bankman-Fried.

Why should you bother

The collapse of FTX, one of the largest cryptocurrency exchanges, has investors all over the crypto space jittery.

Read about other companies that have written off their FTX investments at:

Paradigm Co-Founder “Deeply Regrets” Investing in FTX, Downsizing to $0

Read how FTX has affected BlockFi below:

BlockFi has “significant exposure” to FTX, and denies owning the majority of the assets on the exchange

See the original on the Daily Queen

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