Temasek Deducts $275 Million From Its Stake in FTX

Temasek To Write Off FTX Investment

Temasek, the $300 billion sovereign wealth fund of Singapore, has written off all of its $275 million stake in FTX and FTX US. In FTX International, Temasek had funded $210 million for a 1% interest, while in FTX US, it had spent $65 million for a 1.5% stake. According to a statement released by the fund on November 17, the investments were made throughout two rounds in October 2021 and January 2022, respectively.

Temasek To Write Off FTX Investment

The statement mentioned that in light of FTX's financial situation, Temasek has opted to write off the entire investment in FTX, regardless of the result of FTX's bankruptcy protection petition. The business, which devotes 6% of its portfolio to initial investments, declared that it still sees the possibility of blockchain applications and decentralized technology to change industries and foster global connectivity.

Temasek stressed in its statement today that the $275 million loss only accounts for 0.09% of its net portfolio, which the company estimates will be $294 billion as of March 31, 2022. In addition, the corporation emphasized that it had carried out an intensive due diligence exercise on FTX, which took roughly eight months from February to October 2021, but it did acknowledge that it is not practical to remove all risks.

Disclaimer: The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

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Temasek Deducts $275 Million From Its Stake in FTX

Gungun Bhatia

Gungun is an enthusiastic writer that likes to create content for various aspects of the blockchain and crypto industry. She carries out extensive research and provides readers with informative and high-quality material.