Singapore Government Affiliate Wealth Fund Temasek Announces FTX Exposure!

Singapore’s sovereign wealth fund, which manages about $300 billion Temasek, FTX and FTX USHe said his exposure in the U.S. was $275 million.

Wealth Fund Temasek’s $275 Million Investment in FTX

Temasek invested $210 million for a 1% stake in FTX International and $65 million for a 1.5% stake in FTX US. Investments took place in two rounds, in October 2021 and January 2022, respectively, according to the fund’s statement on November 17.

“Considering the financial condition of FTX, we have decided to cancel our entire investment in FTX, regardless of the outcome of FTX’s filing for bankruptcy protection,” the statement said.

Temasek said in a statement today that the $275 million amount represents a very small portion of the net portfolio value of $403 billion as of March 31, 2022. For this reason, he stated that this amount did not affect them.

The company also emphasized that it conducted an extensive due diligence process for FTX, which took approximately eight months from February to October 2021, while also admitting that it is not possible to eliminate all risks.

The company, which dedicates 6% of its portfolio to early-stage investments, said it continues to recognize the potential of blockchain applications and decentralized technologies to transform industries and produce a more connected world.

“But recent events have illustrated what we described earlier the birth of the blockchain and crypto industry and the numerous opportunities as well as the significant risks it entails,” he added.

Bloomberg previously Temasek and softbank‘s failed crypto exchange reported that they would wipe out hundreds of millions of dollars they had invested in FTX.

*Not investment advice.