Singapore's Temasek to Write Down its $275M FTX Investment to $0: What Happened?

In the latest reaction to the FTX collapse, Singapore state investor Temasek Holdings announced that it will write down the value of its entire $275 million investment in the collapsed crypto currency exchange. Singapore state investor Temasek Holdings said it would write down the value of its entire investment of $275 million in collapsed crypto currency exchange FTX.

The Temasek FTX Investment: A Detailed Look

Temasek invested $275 million in FTX, believing in the platform's potential. Singapore's state-funded investment firm is writing down its entire investment in FTX following the crypto exchange's implosion. This decision comes after significant scrutiny of FTX's financial practices and ultimate bankruptcy.

Why the Write-Down?

The decision to write down the entire investment highlights the significant losses faced by investors following the FTX collapse. In a letter to investors, Sequoia attributed FTX’s “liquidity crunch” and “solvency risk” as reasons for their action. This underscores the volatile nature of cryptocurrency investments and the importance of due diligence.

Temasek's Response

Singapore's Investing.com- Singapore state fund Temasek said on Thursday that it plans to write down the entirety of its investment in FTX after the beleaguered crypto exchange declared bankruptcy. The move reflects Temasek's commitment to responsible investing and its willingness to absorb losses resulting from unforeseen circumstances.

Key Takeaways:

• Temasek is writing down its entire $275 million investment in FTX.
• The write-down is a consequence of FTX's collapse and subsequent bankruptcy.
• The situation highlights the risks associated with cryptocurrency investments.

This write-down serves as a stark reminder of the risks involved in investing in the cryptocurrency sector, even for established and reputable investment firms like Singapore's Temasek.