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Singapore State Fund Temasek Writes Down $275 Million Investment in FTX– Here’s What Happened

Source: AdobeStock/ Richie Chan

As the current collapse of significant exchange FTX continues to damage the crypto markets throughout the world, Singapore’s state-run fund Temasek has actually chosen to make a note of the $275 million financial investment made into the stopped working crypto exchange.

” We invested US$210 million for a minority stake of ~ 1% in FTX International, and invested US$65 million for a minority stake of ~ 1.5% in FTX United States, throughout 2 financing rounds from October 2021 to January 2022,” Temasek stated in a declaration “In view of FTX’s monetary position, we have actually chosen to jot down our complete financial investment in FTX, regardless of the result of FTX’s insolvency defense filing.”

” We think that exchanges form an essential part of international monetary systems. The thesis for our financial investment in FTX was to buy a leading digital property exchange supplying us with procedure agnostic and market neutral direct exposure to crypto markets with a charge earnings design and no trading or balance sheet threat,” according to the Singaporean entity.

Temasek states the fund’s portfolio of financial investments deserves as much as S$403 billion ($2935 billion), which implies that the most recent advancement is not likely to apply a significant influence on its activities.

” The expense of our financial investment in FTX was 0.09% of our net portfolio worth of S$403 billion since 31 March 2022,” according to the declaration.

At the very same time, Temasek stated its financial investment in FTX was not part of a bigger technique to broaden the fund’s direct exposure to crypto.

” There have actually been misperceptions that our financial investment in FTX is a financial investment into cryptocurrencies. To clarify, we presently have no direct exposure to cryptocurrencies,” the entity stated.

Temasek likewise stated that likewise to its other financial investments, “we performed a comprehensive due diligence procedure on FTX, which took around 8 months from February to October2021 Throughout this time, we examined FTX’s audited monetary declaration, which revealed it to be lucrative.”

This stated the Singaporean entity confessed that its choice to rely on the fund’s cash to a business run by Sam Bankman-Fried was not based upon an appropriate examination of the intentions that were driving FTX’s creator.

” It appears from this financial investment that maybe our belief in the actions, judgment, and management of Sam Bankman-Fried, formed from our interactions with him and views revealed in our conversations with others, would appear to have actually been lost,” Temasek mentioned.

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