Singapore’s state-owned investment firm Temasek revealed despite eight months of due diligence in 2021, it didn't find any significant red flags in FTXs financials before deciding to invest $275 million into the now-bankrupt crypto exchange.
Like many of FTX’s more than one million creditors, the Singapore-based firm has been left blindsided by the collapse of FTX and the ongoing fallout, saying in a Nov. 17 post: “The thesis for our investment in FTX was to invest in a leading digital asset exchange providing us with protocol agnostic and market neutral exposure to crypto markets with a fee income model and no trading or balance sheet risk.”
As another precaution, the firm said it interviewed people familiar with FTX, including employees, industry participants and other investors.
“We recognize that while our due diligence processes may mitigate certain risks, it is not practicable to eliminate all risks,” the firm said.
“It is apparent from this investment that perhaps our belief in the actions, judgment, and leadership of Sam Bankman-Fried, formed from our interactions with him and views expressed in our discussions with others, would appear to have been misplaced.”
“We continue to recognize the potential of blockchain applications and decentralized technologies to transform sectors and create a more connected world.
Source: Cointelegraph
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