Singapore’s Temasek holds inside evaluation of $275 million FTX-related loss By Reuters

SINGAPORE (Reuters) – Singapore’s Deputy Prime Minister Lawrence Wong stated on Wednesday that Temasek Holdings has initiated an inside evaluation of its funding within the now-bankrupt FTX crypto change, which resulted in a write-down of $275 million.

Wong, who can also be finance minister, stated the loss didn’t imply state investor Temasek’s governance system was not working and “no quantity of due diligence and monitoring can get rid of the dangers altogether”.

However Singapore’s leader-in-waiting informed parliament the loss was “disappointing” and had precipitated reputational injury to Temasek.

“The truth that different main world institutional traders like BlackRock (NYSE:) and Sequoia Capital additionally invested in FTX doesn’t mitigate this,” stated Wong.

After pumping about $275 million into FTX, Temasek determined to jot down down the funding following the spectacular collapse of the change.

The evaluation shall be performed by an unbiased inside group reporting on to the board and won’t contain those that made the funding, Wong stated.

Temasek has stated its price of funding in FTX was 0.09% of its web portfolio worth of S$403 billion ($293.97 billion) as of March 31, 2022, and it at the moment had no direct publicity in cryptocurrencies.

Explaining its actions, Temasek stated it had performed “intensive due diligence” on FTX from February to October 2021 and its audited monetary assertion then “confirmed it to be worthwhile”.

Wong informed lawmakers the person loss didn’t impression returns to Singapore’s reserves, that are tied to long-term returns.        

FTX’s different backers comparable to SoftBank Group Corp’s Imaginative and prescient Fund and Sequoia Capital have additionally marked down their funding to zero after FTX, based by Sam Bankman-Fried, filed for chapter safety in the USA this month week within the highest-profile crypto blowup up to now. 

($1 = 1.3709 Singapore {dollars})