Temasek International, the state investment fund of Singapore, said in a public statement on Thursday that it is writing off US$275 million that it had invested in the defunct crypto exchange FTX before it shut down.
According to a statement, Temasek said,
“In view of FTX’s financial position, we have decided to write down our full investment in FTX, irrespective of the outcome of FTX’s bankruptcy protection filing.”
Temasek invested US$210 million in FTX and US$65 million in FTX US, its independently operated U.S. entity, over the course of two funding rounds from October 2021 to January 2022, totaling US$275 million.
After experiencing a liquidity crisis, FTX, once the second-largest crypto exchange in the world by volume and valued at more than $30 billion, filed for bankruptcy last week.
This sent shockwaves through the entire industry, affecting many participants in the cryptocurrency space, such as BlockFi, Genesis, and AAX exchange.
The state investment fund further clarified that it currently has no direct exposure to cryptos and that its investment in FTX did not involve the purchase of any cryptocurrencies.
Temasek’s investment in FTX cost it 0.09% of its net portfolio value, which was approximately US$294 billion at the end of March.
Temasek claimed to have spent eight months, from February to October 2021, conducting a thorough investigation into the defunct crypto exchange with a focus on regulatory risk and compliance. But it appears that Temasek did not anticipate the exchange’s demise and the allegations that followed regarding FTX.
According to reports, FTX used client funds worth at least $4 billion to support Alameda Research, a sister company and trading firm that experienced numerous deal losses.
Paradigm, SoftBank, and Multicoin Capital are among the other participants in the funding round in which Temasek invested in FTX.