Temasek of Singapore: Previously conducted an eight-month due diligence on FTX, admits to a $275 million investment loss.

The Singapore government, through its 100% state-owned investment company Temasek Holdings, is one of the shareholders of FTX. In a statement released on 11/17, Temasek Holdings announced that despite extensive due diligence, they have decided to divest their investments in FTX International and FTX US.

Temasek Reveals Investment in FTX

Temasek disclosed that it invested $210 million in FTX International for less than 1% stake from October 2021 to January 2022, and an additional $65 million for less than 1.5% stake, totaling $275 million.

Due to the investment in FTX representing only 0.09% of Temasek's total value of $403 billion, it decided to impair this investment, regardless of the outcome of FTX's bankruptcy.

Eight Months of Due Diligence Couldn't 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. They also evaluated regulatory risks, including KYC/AML compliance, as well as input from cybersecurity, legal experts, interviews with FTX employees, industry professionals, and other investors.

Following FTX's bankruptcy restructuring, Temasek stated, "We recognize that while our due diligence processes can mitigate some risks, eliminating all risks is impractical."

Temasek: Misappropriation of Assets by FTX Would Be Serious Fraud

Temasek also noted reports of potential misuse of user assets by FTX. They believe that if true, it would constitute very serious misconduct or fraud by FTX, pending regulatory investigation.

Temasek also expressed that their understanding of SBF's actions, judgment, leadership, and the perspectives shaped by discussions with people around him, seems to be incorrect.