Temasek, a Singapore-based global investment company possessing a portfolio that is worth $403 billion, is no longer interested in waiting for the outcome of FTX crypto exchange’s Chapter 11 bankruptcy filing.
According to a statement released by the multinational conglomerate, it will “write down” its $275 million investment that is composed of a $210 million minority stake for about 1% of the exchange’s international business and a $65 million minority stake for 1.5% in FTX U.S.
“In view of FTX’s financial position, we have decided to write down our full investment in FTX, irrespective of the outcome of FTX’s bankruptcy filing,” said the statement of Temasek that was released on Thursday.
The investment company poured in millions for the Sam Bankman-Fried-led platform across two funding rounds that started in October 2020 and ended in January 2022.
Crashing During A Last-Ditch Effort
Last Friday, FTX filed for a Chapter 11 Bankruptcy after it earlier announced its plans to lay off some of its workers.
Under this particular chapter of the U.S. Bankruptcy Code, the Temasek-backed FTX crypto exchange platform (now classified as debtor) will be given the chance to implement a reorganization in order to keep its business alive and still have the chance to settle its obligations to its creditors over time.
Following this development, there were reports that SBF and a few remaining staff of the imploded company spent the weekend calling potential “white knight” investors in order to raise $8 billion to dig itself out of its gigantic financial hole.
FTX crashed again on this front as the attempt was unsuccessful and its investors are essentially forced now to wait for the result of its bankruptcy filing.
Softbank, another Asian institution based in Japan, already announced it will mark its $100 FTX investment to zero as it already lost hope that the exchange will recover from its current misery.
Temasek Clarifies Its Exposure to FTX
Temasek expressed its dismay over SBF and FTX, saying that their belief in the action, wisdom and judgment of the company and its leadership appeared to have been misplaced.
Temasek also took the initiative to clarify that its investment in FTX are not placed for cryptocurrencies, saying it has no direct exposure to the digital asset class.
Nonetheless, the culmination of the FTX drama undeniably hurt the crypto market which ended up being poorer by almost $150 billion after Bitcoin and the altcoins experienced severe price dumps, losing all of their gains during the last few weeks.
Before the highly publicized collapse happened, the crypto market was steadily holding the $1 trillion turf in overall valuation. At the time of this writing, its overall market capitalization is $792 billion.
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