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CAPITAL MARKETS

Temasek bares its soul on FTX failure

In a highly unusual step, Singapore’s sovereign wealth vehicle has spelled out how and why it bought into the FTX story.

Temasek-logo-shadow-figure-Reuters-960.jpg
Photo: Reuters

On Thursday, Singapore’s Temasek published a precise account of its investment in failed crypto platform FTX. It is rare indeed to see a sovereign wealth vehicle bare its soul in such detail about an investment.

Temasek is one of several big names to have been caught up in the FTX collapse, among them Sequoia Capital, SoftBank’s Vision Fund and Ontario Teachers’ Pension Plan. Temasek today announced it would write down the entirety of its $275 million investment in FTX.

In doing so, Temasek provided an explanation of its approach to blockchain technologies, its due diligence and rationale in making the investment, and its overall risk-return framework.

It also sounded an unusually emotional note: “It is apparent from this investment that perhaps our belief in the actions, judgment and leadership of Sam Bankman-Fried, formed from our interactions with him and views expressed in our discussions with others, would appear to have been misplaced.”

Strategy

The statement starts with Temasek’s blockchain strategy. Temasek believes that innovative technologies such as blockchain “are enablers with the potential to transform sectors and create a more connected world,” it says.

To


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