The fallout from the collapse of Sam Bankman-FTX Fried's crypto enterprise has raised focus on the Singaporean government.
This week, Prime Minister Lee Hsien Loong and Deputy Prime Minister Lawrence Wong will face a barrage of parliamentary questions regarding the losses suffered by retail investors and the diligence conducted by state-owned investor Temasek Holdings Pte, which wrote down its entire $275 million investment in FTX.
On November 11, the FTX exchange filed for bankruptcy, and there are concerns that the site may have stolen consumer cash for use by sibling trading firm Alameda Research. FTX was written off by investors such as Sequoia Capital and Ontario Teachers' Pension Plan.
In a weekend Facebook post, Ho Ching, former CEO of Temasek, remarked, "A loss in what may turn out to be a poorly run firm without adult oversight is egg on our face." She defended Temasek's broader approach by stating, "some of Temasek's finest investments were contrarian bets."
Temasek's website has been modified to state that many rounds of due diligence were conducted on FTX and that Temasek "asked about the relationship, preferential treatment, and separation between Alameda and FTX and received legally binding confirmations."
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