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Singapore’s Temasek writes down $275M investment in FTX
Summary
Temasek, an investment firm owned by the Singapore government, has announced that it is writing down its full investment in FTX, a cryptocurrency exchange that recently filed for bankruptcy protection. The firm said that its due diligence process for FTX took about 8 months, and that it is apparent from the investment that its belief in the actions, judgement and leadership of FTX CEO Sam Bankman-Fried was misplaced.
Q&As
What is Temasek?
Temasek is an investment firm owned by Singapore’s government.
What is the value of Temasek's investment in FTX?
The value of Temasek's investment in FTX is $210 million USD.
What is Temasek's reason for investing in FTX?
The reason Temasek invested in FTX is because it wanted to back a “leading digital asset exchange providing us with protocol agnostic and market neutral exposure to crypto markets with a fee income model and no trading or balance risk sheet.”
What does Temasek's due diligence process involve?
Temasek's due diligence process involves a review of FTX’s audited financial statement.
What are the consequences of FTX's collapse?
The consequences of FTX's collapse are that Temasek is writing down its investment, SoftBank is writing down its investment, and Sequoia is writing down its investment.
AI Comments
👍 At least Temasek did their due diligence before investing in FTX.
👎 FTX's investors are taking a huge hit because of the company's bankruptcy.
AI Discussion
Me: Temasek, the investment firm owned by Singapore's government, wrote down its full investment in FTX.
Friend: What does that mean?
Me: It means that Temasek believes that its investment in FTX was a mistake.
Action items
- Do your due diligence when investing in any company, especially a new or relatively unknown one.
- Be aware of the risks associated with investing in new and unproven companies.
- Be prepared to lose your entire investment if the company goes bankrupt.
Technical terms
- FTX
- a cryptocurrency exchange that recently filed for bankruptcy
- Temasek
- an investment firm owned by Singapore’s government
- SoftBank
- an investment firm
- Sequoia
- an investment firm
- BlackRock
- an investment firm
- Tiger Global
- an investment firm
- Insight Partners
- an investment firm
- Paradigm
- an investment firm