Singapore State Investment Firm to Lose $275 Million
The much-publicized FTX collapse painted a clear picture of what a financial contagion looks like.
This is after several interlinked companies in the crypto space also went down with liquidity issues as FTX breathed its last.
Some have described it as the crypto version of the 2008 economic collapse that wiped billions off the grid.
Singapore State Firm Announces Write Off
As the FTX shockwaves continue to wreak havoc in the US, its effects are beginning to be felt in other parts of the world. More specifically, this time in Singapore. Given FTX’s financial situation, state-owned investment firm Temasek has opted to write down the whole amount of its investment in the company.
A write-down is viewed as an expense, lowering net income and tax obligations.
The investment company contributed $210 million and $65 million in two funding rounds from October 2021 to January 2022 for a minority ownership of 1% and 1.50% in FTX International and FTX US, respectively.
This spending binge cost the corporation 0.09% of its net portfolio value and, according to the company then, that investment was not going to have a significant impact on its overall performance.
Largest FTX Related Loss Reported
Given the prevailing situation, the company is writing down the total $275M it invested in the cryptocurrency exchange.
According to Chinese crypto reporter Colin Wu, Temasek is likely the organization that lost the most money on FTX, despite the fact that it may not seem like a big loss in the grand scheme of things.
As allegations continue to pour in that Sam Bankman-Fried mishandled customer assets, Temasek is ready pile on the former FTX CEO. According to Temasek, if the allegations against the embattled former CEO are true, it would amount to “serious misconduct or fraud.”
The firm’s statement went on to say that their earlier beliefs in the actions, judgment, and leadership of Sam Bankman-Fried would appear to have been misplaced.
This stance by Temasek comes days after SoftBank had written off its $100 million investment in FTX. Sequoia Capital also joined the club when Softbank made the announcement.
As things stand now, Sam Bankman-Fried is a wanted man. Reports have come out that the FBI plans to extradite him to the US, where he should answer what anyone would imagine would be hundreds of questions about how things went the way they did.
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