The largest Asian investment firm Temasek, owned by the government of Singapore, announced investments in the FTX exchange of $275 million. Investments were written off at a loss.
In a press release, Temasek said that it invested in FTX between October 2021 and January 2022, having previously carefully studied the prospects of the site. $210 million was allocated to finance the FTX exchange, and $65 million was provided to the US division of FTX.US. After the start of the liquidity crisis on the sites, Temasek’s management decided to write off investments at a loss.
“Given the financial position of FTX, we have decided to write off our investment in the company in full, regardless of the outcome of the exchange’s bankruptcy,” the statement said.
Given FTX’s $20 billion peak capitalization, Temasek owned about 1% of the company. At the same time, representatives of the Singaporean company were not among the directors of the site, but the company “carefully followed the corporate policy of FTX.” In the US division of the FTX.US exchange, Temasek owned a $1.5% stake.
“Some people think that our investment in FTX is an investment in cryptocurrencies. Let’s make it clear that we do not have direct investments in digital assets,” Temasek representatives emphasize.
Temasek manages assets worth $409 billion. Losses from investments in FTX amount to 0.09% of the total investment portfolio of the Singaporean company.
“We continue to recognize the potential of blockchain and decentralized technologies. But recent events have highlighted that the cryptocurrency and blockchain industry is just in its infancy. It offers countless opportunities, but it also poses significant risks. There are inherent risks with any investment,” Temasek concludes.
It was recently reported that US venture capital firm Sequoia Capital wrote off a $213.5 million investment in FTX at a loss.
Source: Bits
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