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 билдирүү.
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:
"FTXке болгон инвестициябыздын тезиси бизге киреше модели жана соода же баланстык тобокелдиги жок крипто рынокторуна протоколдук агностикалык жана рыноктук нейтралдуу таасир көрсөтүүнү камсыз кылган алдыңкы санариптик активдердин алмашуусуна инвестициялоо болгон."
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:
«Биз секторлорду трансформациялоо жана көбүрөөк байланышкан дүйнөнү түзүү үчүн блокчейн тиркемелеринин жана борбордон ажыратылган технологиялардын потенциалын таанууну улантып жатабыз. Бирок акыркы окуялар биз буга чейин аныктаган нерсени - блокчейн жана крипто индустриясынын жаңыдан пайда болгонун жана сан жеткис мүмкүнчүлүктөрдү, ошондой эле олуттуу тобокелдиктерди көрсөттү.
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/