Singapore state-owned investment firm Temasek, a shareholder of FTX, has engaged the cryptocurrency exchange in the liquidity crunch that led to its unexpected (and still pending) bailout on Nov. 8.
Speaking to Reuters, the sovereign wealth fund said: “we are aware of the developments between FTX and Binance, and we are involving FTX in our capacity as a shareholder”, avoiding providing more details about the impacts of the case on its portfolio.
Temasek invested in a series of FTX round findings that led to the exchange’s valuation at $32 billion in January. Ten months later, the Singapore company participates in the rescue of the exchange. Temasek participated in FTX’s Series B, Extended Series B, and Series C funding rounds, when the exchange raised $1 billion, $420 million, and $400 million, respectively.
Some shareholders learned of the deal, via Twitter, on November 8. In his subsequent letter to shareholders, Sam Bankman-Fried, aka SBF, apologized for being “difficult to reach” in recent days, acknowledged that he has no idea what exactly the Binance deal means, and finally, he closes the letter by saying that he will be “quite saturated” in the next few days, and that he will write again “when he has time too”.
SBF letter to investors released: pic.twitter.com/NcZAb03zLb
— Will Clemente (@WClementeIII) November 8, 2022
FTX was backed by other big players on the venture capital scene including Sequoia Capital, BlackRock, SoftBank, Ontario Teachers’ Pension Plan, Paradigm, Circle, Ribbit Capital, Alan Howard, Tiger Global and Multicoin Capital.
As Cointelegraph reports, Some of the biggest crypto companies are being urged to be transparent about the risks they are exposed to following the liquidity crisis that befell FTX and trading firm Alameda Research.
Tether CTO Paolo Ardoino cleared up in a tweet that the stablecoin issuer has no exposure to any of the distressed firms. In the same way, Circle CEO Jeremy Allaire also denied rumors that the company had exposure to FTX and Alameda. Brian Armstrong, CEO of cryptocurrency exchange Coinbase, also took the opportunity to secure to its users that the firm does not have any material exposure to FTX or FTT.
As the FTX and Alameda crisis unfolded, Binance CEO Changpeng Zhao promised to implement a way to provide full transparency of exchange reserves using a Proof-of-Reserve mechanism using Merkle Trees.
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