Singapore’s Temasek made investments in several of FTX‘s round discoveries, which helped to raise its January $32 billion valuation.
Temasek, a shareholder in FTX and a state-owned investment company in Singapore, is apparently working with the cryptocurrency exchange to address the liquidity crisis that resulted in the unanticipated (and ongoing) bail out on November 8.
Without going into additional detail about how the case will affect its portfolio, the sovereign wealth fund told Reuters that it was “informed of the developments between FTX and Binance and are engaging FTX in our capacity as shareholder”.
Temasek made investments in several of FTX’s round discoveries, which helped the exchange be valued at $32 billion in January. The Singaporean company is helping to save the exchange ten months later. When the exchange raised US$1 billion, US$420 million, and US$400, respectively, in its Series B, Series B extension, and Series C fundraising rounds, Temasek took part.
On November 8, some stockholders received information about the arrangement via Twitter. Sam Bankman-Fried, aka SBF, apologized for being “hard to contact” in the previous days in his letter to shareholders, admitted he has no idea what the agreement with Binance actually means, and concluded the letter by stating that he will be “quite swamped” in the coming days and will write again “when I have time too.”
Sequoia Capital, BlackRock, SoftBank, Ontario Teachers’ Pension Plan, Paradigm, Circle, Ribbit Capital, Alan Howard, Tiger Global, and Multicoin Capital were among the notable venture capital firms that backed FTX.
Following the liquidity issue that hit FTX and trading firm Alameda Research, some of the biggest crypto companies are being encouraged to be clear about the dangers they are exposed to.
In a tweet, Paolo Ardoino, the chief technology officer of Tether, stated that the stablecoin issuer had no connection to any of the struggling businesses. Jeremy Allaire, CEO of Circle, also refuted claims that the company had exposure to FTX and Alameda.
Coinbase CEO Brian Armstrong also used this occasion to reassure consumers that the company has no material exposure to FTX or FTT. Changpeng Zhao, CEO of Binance, pledged to establish a Proof-of-Reserve method employing Merkle Trees to ensure complete transparency of the exchange’s reserves as the FTX and Alameda crises developed.
