Temasek Says Its FTX Investment Is Now Worth Zero
#Temasek Says Its #FTX Investment Is Now Worth Zero. Temasek said that it did eight months of due diligence on FTX in 2021, reviewing its audited financial statements, analyzing regulatory risk, and cyber security threats before buying a 1% stake in the exchange. In a statement, Temasek said that the $210 million investment, which accounted for 1% of FTX International, and $65 million for 1.5% of FTX.US, represents 0.09% of the firm's net portfolio value of $293.5 billion. Our investment in FTX is an investment into cryptocurrencies in misperception. To clarify, we currently have no direct exposure in cryptocurrencies," Temasek said in a statement. Temasek said that the failure of its investment in FTX isn't an indictment against cryptocurrencies and blockchain technology, but rather a poor bet on Bankman-Fried. Also Read - Hong Kong Wants to Be a Crypto Hub Again “It is apparent from this investment that perhaps our belief in the actions, judgment and leadership of Sam Bankman-Fried, formed from our interactions with him and views expressed in our discussions with others, would appear to have been misplaced,” Temasek said. "While this write down of our investment in FTX will not have significant impact on our overall performance, we treat any investment losses seriously, and there will be learning for us from this." "Separately, we also gathered qualitative feedback on the company and management team based on interviews with people familiar with the company, including employees, industry participants, and other investors," they said. Read the full article