Temasek talks about the loss of reputation due to FTX
2022.11.30 09:27
Temasek talks about the loss of reputation due to FTX
Budrigannews.com – Deputy Prime Minister Lawrence Wong claims that Temasek, an investment company owned by the Singaporean government, has suffered a lot more than just financial losses as a result of investing in FTX.
Wong, who is also the minister of finance, thinks that Temasek’s $275 million investment in FTX has hurt the company a lot. According to a report published by the South China Morning Post, the official addressed the growing criticism regarding Temasek’s FTX exposure during a meeting of the parliament on November 27.
The prime minister emphasized that FTX’s demise was caused by a “very badly managed company” as well as possible fraud and user funds misappropriation.
According to the official, “What happened with FTX, therefore, has caused not only financial loss to Temasek but also reputational damage.” Additionally, Temasek has launched an internal investment review to enhance procedures and learn from past experiences.
Wong emphasized that the reputational harm caused by other major institutional investors like BlackRock and Sequoia Capital cannot be mitigated by their investments.
On November 17, Temasek announced that it had written down its entire $275 million investment in FTX. Although Temasek operates independently, the company is wholly owned by the minister for finance. As of March 2022, the amount represented just 0.09 percent of Temasek’s $403 billion portfolio.
Wong claims that investors’ contributions to the government’s net investment returns contribution, which is the amount of revenue generated by interest earned on reserves, would not be affected by losses related to FTX.
In addition to addressing concerns regarding FTX and Temasek, Wong argued that Singapore aims to be a “responsible and innovative digital asset player” rather than a crypto hub.
It has been demonstrated that some of the earlier optimism regarding blockchain technologies was erroneous.
Wong stated, “I think there is a sense of what these technologies can do that is more realistic.”Additionally, he emphasized that crypto investors must be prepared to lose their entire cryptocurrency investments, adding: This risk cannot be eliminated by regulation.
Related: Temasek wrote down its investment in FTX, but the state-owned company appears to still hold investments in numerous other industry platforms, putting the Singapore government in a parliamentary hot seat.
Temasek is well-known for participating in numerous investment rounds for major crypto companies, such as Binance and Amber Group, despite not directly investing in the sector.
In August, Animoca Brands, a major metaverse and blockchain gaming company, reportedly received $110 million in strategic funding from Temasek.
Temasek didn’t quickly answer Cointelegraph’s solicitation for input.
