Singapore’s government-owned funding agency Temasek has suffered much more than simply monetary losses resulting from investing in FTX, based on Deputy Prime Minister Lawrence Wong.
Wong, who can be the finance minister, believes that Temasek’s $275 million funding in FTX has precipitated important injury to the corporate’s repute. The official addressed the rising criticism over its FTX publicity at a parliament assembly on Nov. 27, based on a report by the South China Morning Put up.
The prime minister emphasised that the collapse of FTX was the results of a “very badly managed firm” in addition to attainable fraud and misappropriation of consumer funds.
“What occurred with FTX, subsequently, has precipitated not solely monetary loss to Temasek but additionally reputational injury,” the official stated, including that Temasek has launched an inner funding assessment to enhance processes and draw classes for the long run.
Wong harassed that investments by different main institutional buyers like BlackRock and Sequoia Capital don’t mitigate that reputational injury.
Temasek, which is absolutely owned by the Ministry of Finance however operates independently, stated on Nov. 17 that it wrote down its total $275 million FTX funding. The quantity accounted for simply 0.09% of Temasek’s $403 billion portfolio as of March 2022. Based on Wong, FTX-related losses wouldn’t have an effect on buyers’ contribution to the online funding returns contribution, which is the quantity of the federal government income coming from curiosity earned on its reserves.
Other than addressing considerations round FTX and Temasek, Wong additionally argued that Singapore has no ambitions to turn into a crypto hub however relatively seeks to be a “accountable and progressive digital asset participant.”
“A few of the earlier optimism about blockchain applied sciences has been confirmed to be […] not well-placed. I believe there’s a extra reasonable sense of what these applied sciences can do,” Wong acknowledged. He additionally emphasised that crypto buyers should be ready to lose all their investments in crypto, including: “No quantity of regulation can take away this danger.”
Associated: FTX collapse put the Singapore authorities in a parliamentary scorching seat
Temasek apparently nonetheless holds investments in lots of different trade platforms. Regardless of circuitously investing in crypto, Temasek is thought for taking part in a number of funding rounds for giant crypto firms corresponding to Binance and Amber Group.
In August, Temasek additionally reportedly led a $110 million strategic funding spherical for main metaverse and blockchain gaming firm Animoca Manufacturers.
Temasek didn’t instantly reply to Cointelegraph’s request for remark.
