Temasek: Invested approximately $275 million in FTX and FTX US, having spent 8 months on due diligence showing FTX was profitable

ChainCatcher news, Temasek released a statement on FTX, stating that from October 2021 to January 2022, Temasek invested $210 million to acquire approximately 1% minority stake in FTX International and invested $65 million to acquire approximately 1.5% minority stake in FTX US. As of March 31, 2022, the investment cost in FTX accounted for 0.09% of our portfolio net value of SGD 403 billion. Given FTX's financial situation, Temasek decided to write down its entire investment in FTX, regardless of the outcome of FTX's bankruptcy protection application.

In terms of due diligence on FTX, it took about 8 months from February to October 2021 to review FTX's audited financial statements, which showed it was profitable; additionally, there was a focus on regulatory risks associated with cryptocurrency financial market service providers; qualitative feedback on the company and management team was collected. After the investment, Temasek continued to engage in business strategy management and performance monitoring. However, eliminating all risks is not practically feasible.

From this investment, it is clear that "our faith in Sam Bankman-Fried's actions, judgment, and leadership appears to have been misplaced." (source link)