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Bankrupted Cryptocurrency Exchange Affects Temasek as per Forbes

Bankrupted Cryptocurrency Exchange Affects Temasek as per Forbes

Singapore – Forbes reports that Temasek Holdings invested $205 million into FTX, a cryptocurrency platform, before the declaration of its bankruptcy in the US or the United States.

FTX group declared in a statement on November 11, Friday, that the company had already filed for Chapter 11-bankruptcy proceedings in the US. It started an organized process to monetize and review assets for the assistance of all international shareholders.

The filing was after Binance, the biggest digital asset platform in the world, agreed to acquire FTX earlier this week. However, Binance backed out, which led the crypto market players to consider probable regulator responses.

The Forbes report stated that FTX became a big draw for enterprise capitalists willing to participate in the Bitcoin boom as the digital asset exchange expanded.

As per the report, FTX raised a billion dollars in June 2021 at an $18 billion valuation from enterprise investors like SoftBank, Sequoia Capital, and paradigm. FTX gave in a $421 million haul three months later, pushing the appraisal to $25 billion. It was from investors like Tiger Global Management, the Ontario Teachers’ Pension Plant, and Temasek. This year, by January, cryptocurrency prices dropped. However, FTX charged ahead. Investors invested another $400 million at a $32 billion valuation at FTX.

SWF, or the Singapore Sovereign Wealth Fund, is the second biggest outside shareholder in this crypto’s capitalization, having 7 million shares for an investment worth $205 million. FTX received the investment in the three big funding rounds – Series B extension, Series B, and Series C last year.

Temasek Holdings invested along with other investors after Madam Ho Ching, the CEO, stepped down in October 2021 after helming the funds for 18 years. Per a spokesperson from Temasek, there’s a $320 million stake. They also shared that they are aware of the improvements as they decided to be a shareholder of FTX.

Sequoia Capital wrote to the partners that the investment to FTX went to $0 from the $200 million investment.

Binance tweeted that it didn’t push through in buying FTX after a day of initialing the letter of intent. According to the company, they hoped to support the customers of FTX to provide liquidity. However, the issues are ahead of their control. It also stated the previous press reports about the mishandling of client funds and analysis by the US regulators.

Zhao Changpeng, the owner of Binance, stated on Twitter that the company had around $2.1 billion worth of BUSD and FTT. The company decided to liquidate the remaining FTT in its books because of the previous revelations.

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