Temasek, a Singapore-based global investment company possessing a portfolio that is worth $403 billion, is no longer interested in waiting for the outcome of the FTX crypto exchange’s Chapter 11 bankruptcy filing.
It will write down its $275 million investment which is composed of a $210 million minority stake for about 1% of the exchange’s international business and a $65 million minority stake for 1.5% in FTX U.S.
The investment company poured in millions for the Sam Bankman Fried-led platform across two funding rounds that started in October 2020 and ended in January 2022.
Last Friday, FTX filed for a chapter 11 Bankruptcy after it earlier announced its plans to lay off some of its workers.
Under this particular chapter of the U.S. Bankruptcy Code, the Temasek-backed FTX crypto exchange platform (now classified as debtor) will be given the chance to implement a reorganization in order to keep its business alive and still have the chance to settle its obligations to its creditors over time
Following this development, SBF and a few remaining staff of the imploded company spent the weekend calling potential “white knight” investors in order to raise $8 billion to dig itself out of its gigantic financial hole.
FTX crashed again on this front as the attempt was unsuccessful and its investors are essentially forced now to wait for the result.
Temasek expressed its dismay over SBF and FTX, saying that their belief in the action, wisdom, and judgment of the company and its leadership appeared to have been misplaced.
Temasek also took the initiative to clarify that its investment in FTX is not placed for cryptocurrencies, saying it has no direct exposure to the digital asset class.
Nonetheless, the culmination of the FTX drama undeniably hurt the crypto market which ended up being poorer by almost $150 billion after Bitcoin and the altcoins experienced severe price dumps, losing all of their gains during the last few weeks
Before the highly publicized collapse happened, the crypto market was steadily holding the $1 trillion turf in overall valuation. At the time of this writing, its overall market capitalization is $792 billion.
