The Singapore government is facing increased scrutiny following the collapse of FTX.
The FTX exchange went bankrupt on November 11, and there are questions as to whether the platform has embezzled client funds for use by sister trading company Alameda Research. Investors such as Sequoia Capital and Ontario Teachers Pension Plan have also reset their stake in FTX.
Singapore Government Tackles FTX Issue
Prime Minister Lee Hsien Loong and Deputy Prime Minister Lawrence Wong faced a series of parliamentary questions over the due diligence undertaken by state investment fund Temasek Holdings Pte, which lost its entire $275 million investment in FTX. In addition, losses suffered by crypto investors are also on the agenda.
Ho Ching, former CEO of Temasek, shared on Facebook over the weekend; “To make a loss in a poorly managed company without adult supervision is to lay eggs in our faces,” he said. Also, some of Temasek’s best investments were made in contravention,” he defended Temasek’s broader strategy.
A disclosure page on Temasek’s website has been updated, stating that multiple due diligence has been made for FTX, and Temasek has “received information about the relationship, preferential treatment and separation between Alameda and FTX, and has given appropriate confirmations that are contractually binding.”
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