Editors News- Notably, between October 2021 and January 2022, Temasek contributed $275M.
- Similarly, The Sequoia Capital team made the decision to fully write down last week.
Organizations are continuing to dissociate themselves from the defunct FTX crypto exchange. The Sequoia Capital team made the decision to fully write down the value of its FTX assets exactly one week ago. FTX’s “liquidity crunch” and “solvency risk,” as stated by Sequoia in a letter to investors, prompted the company’s decision.
The newest turn of events involves plans by Temasek, Singapore’s state investment fund. To write off all the $275 million it had invested in the cryptocurrency exchange.
Irrespective of Bankruptcy Filing Outcome
Notably, between October 2021 and January 2022, Temasek contributed $210 million for a 1% minority investment in FTX International and $65 million for a 1.5% minority stake in FTX US over two fundraising rounds.
Official statement noted:
“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, like with all of its investments, did thorough research into FTX as part of its “due diligence process.” From February of the previous year to October of that one, it was the same. The audited financial account of the exchange was evaluated during that period, the statement said, and it was found to be “profitable.” They also interviewed others who were acquainted with the organization to get their thoughts on the management team and the company overall.
Moreover, several international regulatory bodies are now investigating the crypto exchange FTX on suspicion of mishandling and exploiting consumer funds. If the claims were accurate, according to Temasek, it would constitute “serious misconduct or fraud.”
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Source: https://thenewscrypto.com/singapores-temasek-to-write-off-275m-ftx-exposure/