Singaporean Investment Firm Temasek Writes Off $275 Million Investment in Bankrupt FTX

© Reuters. Singaporean Investment Firm Temasek Writes Off $275 Million Investment in Bankrupt FTX

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

Temasek Writes Off FTX Investment

In a statement issued on Thursday, November 17th, Singapore state-owned investment firm Temasek said that it will write off its $275 million investment in FTX, a week after the exchange suffered a liquidity crunch.

Temasek had invested $210 million for a minority stake of about 1% in FTX International, and another $65 million for a minority stake of about 1.5% in FTX US. The investments were carried out across two funding rounds from October 2021 to January 2022.

Temasek said it performed an 8-month due diligence before its investment. However, it has now decided to mark off its FTX investment “irrespective of the outcome of FTX’s bankruptcy protection filing.”

FTX Investment is a Negligible Part of Temasek’s Portfolio

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

The firm notes that the investment will not have a significant impact on its performance. Temasek added that there have been misperceptions about their investment in FTX and the investment firm does not have direct exposure to crypto.

On the Flipside

• Temasek said that the implosion of FTX isn’t an indictment against crypto and blockchain, but rather a poor bet on Bankman-Fried.

Why You Should Care

The collapse of FTX, one of the biggest crypto exchanges, is unnerving investors throughout the crypto space.

Read about other firms writing off their FTX investment in:

Paradigm Co-Founder “Deeply Regrets” AiVIF in FTX, Writes Down Investment to $0

Read how FTX has affected BlockFi below:

BlockFi has “Significant Exposure” to FTX, Denies Holding Majority of Assets on Exchange

See original on DailyCoin