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Singapore’s public investment firm, Temasek, has revealed that despite eight months of due diligence in 2021, it found no significant red flags in FTX’s finances before deciding to invest $275 million in the now bankrupt crypto exchange.

Like many FTX more than a million creditorsthe Singapore-based company was taken aback by the collapse of FTX and the ongoing falloutsaying in a November 17 Publish:

“The thesis of our investment in FTX was to invest in a leading digital asset exchange providing us with protocol-agnostic and market-neutral exposure to the crypto markets with a fee-based revenue model and zero trading risk. or balance sheet.”

Before the company decided to invest $210 million for a 1% stake in FTX International and $65 million for a 1.5% minority stake in its US-based entity FTX US over two rounds of table, she claims to have carried out “extensive due diligence”. from Feb. to Oct 2021.

According to Temasek, he reviewed FTX’s audited financial statements, investigated associated regulatory risk with financial crypto-market service providers and sought advice from external legal and cybersecurity specialists, with legal and regulatory review undertaken for investments.

As another precaution, the company said it interviewed people familiar with FTX, including employees, industry players and other investors.

“We recognize that while our due diligence processes can mitigate some risks, it is not possible to eliminate all risks,” the company 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 the opinions expressed in our discussions with others, appears to have been misplaced. .”

Related: The Ongoing FTX Saga: Everything That Happened So Far

According to Temasek, he estimates that his investment in FTX was 0.09% of the value of his portfolio of over $293 billion, and none of the disclosed investments involve crypto, despite rumors to the contrary, the company claims. that it has “no direct exposure to cryptocurrencies. ”

“We continue to recognize the potential of blockchain applications and decentralized technologies to transform industries and create a more connected world. But recent events have demonstrated what we identified earlier – the birth of the blockchain and crypto industry and the myriad opportunities as well as significant risks involved.