Singapore’s state-owned funding agency Temasek revealed regardless of eight months of due diligence in 2021, it did not discover any vital pink flags in FTXs financials earlier than deciding to speculate $275 million into the now-bankrupt crypto trade.
Like a lot of FTX’s a couple of million collectors, the Singapore-based agency has been left blindsided by the collapse of FTX and the continued fallout, saying in a Nov. 17 submit:
“The thesis for our funding in FTX was to spend money on a number one digital asset trade offering us with protocol agnostic and market impartial publicity to crypto markets with a payment revenue mannequin and no buying and selling or stability sheet threat.”
Earlier than the agency determined to speculate $210 million for a stake of 1% in FTX Worldwide and $65 million for a minority 1.5% stake in its United States-based entity FTX US throughout two funding rounds, it claims to have carried out “in depth due diligence” from Feb. to Oct. 2021.
Based on Temasek it reviewed FTX’s audited monetary statements, investigated the related regulatory threat with crypto monetary market service suppliers, and sought recommendation from exterior authorized and cybersecurity specialists, with a authorized and regulatory assessment undertaken for the investments.
As one other precaution, the agency mentioned it interviewed individuals accustomed to FTX, together with workers, trade individuals, and different buyers.
“We acknowledge that whereas our due diligence processes could mitigate sure dangers, it isn’t practicable to remove all dangers,” the agency mentioned.
“It’s obvious from this funding that maybe our perception within the actions, judgment, and management of Sam Bankman-Fried, shaped from our interactions with him and views expressed in our discussions with others, would seem to have been misplaced.”
Associated: FTX’s ongoing saga: The whole lot that’s occurred till now
Based on Temasek, it estimates its funding in FTX was 0.09% of its portfolio worth of greater than $293 billion, and not one of the disclosed investments entails crypto, regardless of rumors on the contrary, the agency says it has “no direct publicity in cryptocurrencies.”
“We proceed to acknowledge the potential of blockchain purposes and decentralized applied sciences to rework sectors and create a extra related world. However current occasions have demonstrated what we now have recognized beforehand – the nascency of the blockchain and crypto trade and the innumerable alternatives in addition to vital dangers concerned.”
