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The Crypto Roundup: 29 May 2023 | CryptoCompare.com

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Singapore’s sovereign wealth fund Temasek Holdings has openly expressed regret for its ill-judged $275 million investment in the now-defunct cryptocurrency exchange FTX, following the revelation of the deceitful practices that were being hidden from the exchange’s investors.

In a statement, Temasek clarified there was no evidence of any misconduct on the part of their investment team. In spite of this, the team, along with senior management who made the final call on the FTX investment, accepted collective responsibility and witnessed a reduction in their compensation.

Days after FTX’s downfall in November, Temasek disclosed that it had written off its total investment. It further detailed that this investment, including a $210 million stake in FTX International, which equated to 1% of the exchange, and a $65 million share in FTX.US, representing 1.5% of the US operation, summed up to 0.09% of Temasek’s net portfolio value of $293.5 billion (SGD 403 billion) from the previous year.

Temasek said at the time an intensive eight-month due diligence process preceded its investment in FTX, including an examination of the exchange’s audited financial statements, a thorough analysis of regulatory risks, and potential cyber-security threats.

In light of the FTX debacle, the sovereign wealth fund affirmed it plans to fine-tune its investment appraisal process, particularly with a focus on rapidly expanding enterprises. Temasek emphasized its plans to refrain from cryptocurrency investments and vowed to exercise caution in future dealings within the blockchain sector.

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