FTX Fallout Led Parliament Probe Into Singapore Government

• Singapore government-owned Temasek writes off its investment of $275M on 17 Nov.
• Officials would face lots of questions by parliamentary over the losses by Temasek.

The effects of Sam Bankman-Fried’s FTX crypto empire demise have drawn further scrutiny from the Singapore government. On Nov 11, the FTX exchange filed for bankruptcy, and it’s unclear whether the platform obtained money from users for sister trading company Alameda Research.

Following that, Big-shot firms are still separating themselves from the collapsed FTX exchange. Exactly one week ago, Singapore state-owned investor Temasek Holdings Pte write-off its entire $275 million investment in FTX  that it had previously invested.

Parliamentary Would Shoot Questions to Officials

Singaporean state-holding company Temasek has invested an overall $275 million in FTX. In that, $210 million for a 1% minority share in FTX International and $65 million for a 1.5% minority stake in FTX US throughout two fundraising rounds from October 2021 to January 2022. In the aftermath of FTX’s collapse, the holding company writes down its overall investment in FTX on 17 November. 

As a result of FTX’s “liquidity crunch” and the Singapore government investment fund write-off, a multitude of parliamentary inquiries will be directed at Prime Minister Lee Hsien Loong and Deputy Prime Minister Lawrence Wong, as per the Bloomberg report.

Ho Ching, a former Temasek CEO, posted on Facebook over the weekend that;

A loss in what may turn out to be a badly managed company without adult supervision is egg on our face. 

FTX’s fallout leads a huge effect on the global cryptocurrency market. Further, investors such as Sequoia Capital and the Ontario Teachers’ Pension Plan also sold their FTX holdings. Moreover, the cryptocurrency exchange FTX is now under investigation by several international government regulators on accusations of exploiting and violating user funds.