Temasek Keeps Crypto Banned Four Years After FTX Loss
Singapore's Temasek has not returned to crypto investing since writing down $275M on its failed FTX bet in 2022.
Singapore's state-owned investment giant Temasek is keeping cryptocurrency firmly off its investment menu, nearly four years after its high-profile exposure to the collapsed FTX exchange cost the fund a staggering $275 million writedown in 2022, according to US Top News and Analysis.
The FTX debacle proved to be one of the most embarrassing episodes in Temasek's history, triggering sharp public criticism at home in Singapore. The exchange, once valued in the tens of billions of dollars, filed for bankruptcy in November 2022 amid revelations of widespread fraud by its founder Sam Bankman-Fried.
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Temasek's decision to maintain its distance from digital assets signals a sustained institutional wariness, even as crypto markets have staged dramatic recoveries and other sovereign wealth funds cautiously explore blockchain-related opportunities. For Temasek, the reputational and financial damage from the FTX collapse appears to have set a lasting precedent internally.
The fund's hard line on crypto stands in contrast to growing interest from some traditional financial institutions and governments that are revisiting digital asset strategies as regulatory frameworks mature. Temasek's continued abstention suggests the $275 million loss carried consequences well beyond the balance sheet, reshaping the fund's risk appetite in this asset class for the foreseeable future.
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