Even as FTX remnants proceed to circle the drain amid a barrage of cryptic tweets from the former CEO, an increasing number of businesses have taken the required steps to set the record straight by disclosing their lack of exposure to the company.
Some entities that did have exposure, like Huobi, are trying to withdraw what’s left of their assets in the interim.
Furthermore, notwithstanding the outcome of the US government’s inquiry into FTX and its connected entities, several massive financial institutions have decided to record their investments with the exchange as losses.
Temasek is a private company owned solely by the Singapore Minister of Finance that was established in 1974 by the Singaporean government. Its goal is to oversee government investments across a range of sectors, freeing up the Ministry of Finance to concentrate on key concerns like regulation and tax collection.
Temasek, an investment business with a market capitalization of over $293 billion, has indicated in a statement that it will write down its ownership in both FTX and FTX US.
Temasek acknowledges the potential of blockchain technology across numerous industries, and the statement makes it clear that its investments in FTX were intended to go into blockchain technology, not cryptocurrencies.
Temasek acknowledges, nevertheless, that sometimes even its thorough auditing procedure is insufficient to uncover management problems at a company they intend to invest in.
“We acknowledge that while our due diligence procedures may reduce some risks, it is not practical to do so for all potential dangers. Since then, there have been reports of improper handling and abuse of consumer assets in FTX. If these claims are accurate, FTX has engaged in serious misbehavior or fraud. The regulators are actively looking at everything.
Temasek was not a member of the FTX board of investors because this sum only amounted to about 1% of the company’s shares. Temasek, an unofficial agent of the Singaporean government, has chosen to separate itself from the collapsing erstwhile crypto superpower in order to uphold the same standards as a corporation with a seat on the board.
