Singapore’s state-owned investor, Temasek Holdings, introduced on Thursday that it could be writing off its complete $275 million funding into the collapsed cryptocurrency change, FTX.
It invested $210 million for round a 1 % stake in FTX Worldwide and $65 million for about 1.5 % in FTX US. Each corporations have now filed for Chapter 11 chapter safety in the US.
“In view of FTX’s monetary place, we’ve determined to jot down down our full funding in FTX, regardless of the result of FTX’s chapter safety submitting,” the investor said in a press launch.
Our assertion on FTX. https://t.co/pok0EfNEwq
— Temasek (@Temasek) November 17, 2022
Temasek manages a portfolio of S$403 billion ($294.3 billion) and is owned by the Authorities of Singapore. Its early-stage investments make up about 6 % of its internet portfolio worth, and the price of the FTX funding was solely 0.09 % of the full determine.
The investor additional highlighted that it has no direct publicity to cryptocurrencies.
“There are inherent dangers every time we make investments, divest, or maintain our belongings, and wherever we function. Whereas this write-down of our funding in FTX won’t have a major impression on our total efficiency, we deal with any funding losses severely, and there can be learnings for us from this,” Temasek added.
The Singapore investor adopted Mushy Financial institution Group’s Imaginative and prescient Fund and Sequoia Capital in writing off their FTX funding to zero. The Imaginative and prescient Fund has a $100 million funding into FTX, whereas Sequoia, together with a sister fund, held $210 million with of stake within the crypto change.
Established in 2019, FTX was an aggressively rising cryptocurrency change that was valued at $34 billion in its final funding spherical. Nevertheless, the multi-billion greenback empire of Sam Bankman-Fried collapsed inside days, revealing some horrific enterprise practices of his and his prime administration.
The change has been blamed for utilizing a portion of shopper funds for taking positions within the cryptocurrency market and is now reportedly going through regulatory scrutiny. The regulators in Cyprus and Australia additionally suspended the regulatory license of the native FTX entities.
Lawsuit Naming Celebrities
An Oklahoma-based FTX investor, on behalf of different buyers, filed a lawsuit in opposition to the collapsed cryptocurrency change for “misrepresentations and omissions,” even naming high-profile celebrities and buyers who endorsed the change. Other than Sam Bankman-Fried, different names within the lawsuit are American soccer star Tom Brady and his supermodel former spouse Gisele Bundchen, retired basketball participant Shaquille O’Neal, tennis Grand Slam champion Naomi Osaka, actor and comic Larry David and billionaire investor Kevin O’Leary.
Singapore’s state-owned investor, Temasek Holdings, introduced on Thursday that it could be writing off its complete $275 million funding into the collapsed cryptocurrency change, FTX.
It invested $210 million for round a 1 % stake in FTX Worldwide and $65 million for about 1.5 % in FTX US. Each corporations have now filed for Chapter 11 chapter safety in the US.
“In view of FTX’s monetary place, we’ve determined to jot down down our full funding in FTX, regardless of the result of FTX’s chapter safety submitting,” the investor said in a press launch.
Our assertion on FTX. https://t.co/pok0EfNEwq
— Temasek (@Temasek) November 17, 2022
Temasek manages a portfolio of S$403 billion ($294.3 billion) and is owned by the Authorities of Singapore. Its early-stage investments make up about 6 % of its internet portfolio worth, and the price of the FTX funding was solely 0.09 % of the full determine.
The investor additional highlighted that it has no direct publicity to cryptocurrencies.
“There are inherent dangers every time we make investments, divest, or maintain our belongings, and wherever we function. Whereas this write-down of our funding in FTX won’t have a major impression on our total efficiency, we deal with any funding losses severely, and there can be learnings for us from this,” Temasek added.
The Singapore investor adopted Mushy Financial institution Group’s Imaginative and prescient Fund and Sequoia Capital in writing off their FTX funding to zero. The Imaginative and prescient Fund has a $100 million funding into FTX, whereas Sequoia, together with a sister fund, held $210 million with of stake within the crypto change.
Established in 2019, FTX was an aggressively rising cryptocurrency change that was valued at $34 billion in its final funding spherical. Nevertheless, the multi-billion greenback empire of Sam Bankman-Fried collapsed inside days, revealing some horrific enterprise practices of his and his prime administration.
The change has been blamed for utilizing a portion of shopper funds for taking positions within the cryptocurrency market and is now reportedly going through regulatory scrutiny. The regulators in Cyprus and Australia additionally suspended the regulatory license of the native FTX entities.
Lawsuit Naming Celebrities
An Oklahoma-based FTX investor, on behalf of different buyers, filed a lawsuit in opposition to the collapsed cryptocurrency change for “misrepresentations and omissions,” even naming high-profile celebrities and buyers who endorsed the change. Other than Sam Bankman-Fried, different names within the lawsuit are American soccer star Tom Brady and his supermodel former spouse Gisele Bundchen, retired basketball participant Shaquille O’Neal, tennis Grand Slam champion Naomi Osaka, actor and comic Larry David and billionaire investor Kevin O’Leary.
