The investors of FTX are continue to deal with the fallout from the cryptocurrency bankruptcy. In a pronunciation today Temasek, the investment company owned by the government of Singapore, said it is writing off its entire investment in FTX, “regardless of the outcome of FTX’s bankruptcy protection filing.”
Temasek invested $210 million USD in FTX international, giving it a minority stake of approximately 1%. It also invested $65 million for a minority stake of approximately 1.5% in FTX US, in two rounds of funding from October 2021 to January 2022. The company said the total cost of its investment was 0.09% of its net portfolio value of $ 403 billion SGD (about $293 billion USD).
Temasek noted that his investment in FTX was not an investment in cryptocurrencies. “To clarify, we currently have no direct exposure to cryptocurrencies,” it said.
Instead, the reason it invested in FTX was because it wanted to support a “leading digital asset exchange that gave us protocol-agnostic and market-neutral exposure to crypto markets with a fee-income model and no trading or balance risk sheet.”
It also said that the due diligence process for FTX took about 8 months, from February to October 2021, and involved a review of FTX’s audited financial statement, which showed that the exchange was profitable.
But with the collapse of FTX, Temasek now says, “it is clear from this investment that our belief in the actions, judgment and leadership of Sam Bankman-Fried, shaped by our interactions with him and the views expressed in our discussions with others, may seem right, are misplaced.”
Temasek’s announcement comes a few days after SoftBank said it was writing off its $100 million investment in FTX, which was once valued at $32 billion. Sequoia also said it was writing off its other investments.
Other investors of FTX include BlackRock, Tiger Global, Insight Partners and Paradigm.