Temasek Holdings, which is 100% owned by the Singaporean government and is one of the FTX shareholders, stated in a 11/17 announcement that it still recognized its investment in FTX Interantional and FTX US despite a long period of due diligence.

Temasek reveals FTX investment

Temasek said it spent $210 million investing less than a 1% stake in FTX Interantional between October 2021 and January 2022, and a further $65 million for a less than 1.5% stake, for a total of $275 million.

Since the investment in FTX only accounts for 0.09% of Temasek's total value of 403 billion, it was decided to write down this investment regardless of the outcome of FTX's bankruptcy.

Eight months of due diligence cannot eliminate all risks

Temasek explained that, like all other investments, they reviewed FTX’s audited financial statements from February 2021 to October 2021 to confirm its profitability. It also assessed its regulatory risks, including KYC/AML, etc., as well as the advice of information security and legal experts. Temasek also interviews FTX employees, industry players and other investors.

Following FTX's bankruptcy reorganization, Temasek said: "We understand that while our due diligence process can mitigate certain risks, it is not practical to eliminate all risks."

Temasek: If FTX misappropriates assets, it is a serious fraud

Temasek has also taken note of external reports that FTX has improperly abused user assets. They argue that, if true, FTX is committing very serious misconduct or fraud. Everything remains subject to regulatory investigation.

Temasek also stated that their understanding of SBF’s behavior, judgment and leadership, as well as the views shaped by discussions among those around it, appear to be wrong.

This article Singapore’s Temasek: After eight months of due diligence on FTX, it admitted a loss of US$275 million in investment. It first appeared on Chain News ABMedia.