In a statement issued on Thursday, November 17th, Singapore state-owned investment firm Temasek said that it will write off its $275 million investment in FTX, a week after the exchange suffered a liquidity crunch.
Temasek had invested $210 million for a minority stake of about 1% in FTX International, and another $65 million for a minority stake of about 1.5% in FTX US. The investments were carried out across two funding rounds from October 2021 to January 2022.
Temasek said it performed an 8-month due diligence before its investment. However, it has now decided to mark off its FTX investment “irrespective of the outcome of FTX’s bankruptcy protection filing.”
According to Temasek, the total cost of its investment in the bankrupt crypto exchange is negligible, only representing 0.09% of its net portfolio value of $403 billion as of end-March, 2022.
The firm notes that the investment will not have a significant impact on its performance. Temasek added that there have been misperceptions about their investment in FTX and the investment firm does not have direct exposure to crypto.
The collapse of FTX, one of the biggest crypto exchanges, is unnerving investors throughout the crypto space.
Read about other firms writing off their FTX investment in:
Paradigm Co-Founder “Deeply Regrets” Investing in FTX, Writes Down Investment to $0
Read how FTX has affected BlockFi below:
BlockFi has “Significant Exposure” to FTX, Denies Holding Majority of Assets on Exchange
See original on DailyCoin
Source: Cryptocurrency - investing.com
