Temasek shared that it has written down its full investment in crypto exchange FTX.
Photo credit: 123RF
In a note, the Singapore investment major said it invested US$210 million in FTX International, which represents about a 1% stake. It also poured US$65 million into the troubled exchange’s American business, FTX US, across two funding rounds for a roughly 1.5% stake.
Temasek reiterated that it has no direct exposure in any cryptocurrency.
The investor also shared that it conducted an eight-month due diligence process on FTX, which is similar for all of its other investments. During this time, Temasek studied one of the crypto exchange’s audited financial statements and found that FTX was profitable.
Additional risk mitigation measures taken by Temasek include seeking external legal and cybersecurity and interviews with employees, industry participants, and other investors. After its investment, the company also said it continued to track FTX’s performance and engage its management team.
See also: Singaporeans feel ‘betrayed’ by Temasek-backed FTX
Temasek is the latest FTX investor to mark down its investment into the exchange to US$0. It follows similar moves by SoftBank and Sequoia.
Editing by Lorenzo Kyle Subido
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