Singapore state investor Temasek Holdings is writing down its entire investment in the embattled crypto bourse FTX, Bloomberg reported on Wednesday.
The firm is understood to have invested between $200 million and $300 million in FTX, the report added. This follows a series of similar write-downs by FTX’s other investors including Sequoia Capital, SoftBank Group and more recently, US crypto investment firm Paradigm.
Paradigm’s co-founder Matt Huang tweeted on Tuesday expressing “deep regret” for investing in a founder and company that did not align with its crypto values, and did “enormous damage” to the ecosystem. He added that Paradigm’s equity investment in FTX comprised a small part of its total assets and has been written down to $0.
FTX’s swift blowup appears to be leaving varying impacts on its shareholders.
For institutional investors like Temasek and Canada’s Ontario Teachers Pension Plan (OTPP), the damage has been limited due to the relative size of their portfolio. OTPP, Canada’s third largest pension fund, made investments in FTX International and FTX US exchange amounting to $95 million, comprising less than 0.05% of the pension fund’s total net assets.
Others were less fortunate. Last week, crypto hedge fund Galois Capital admitted that around $40 million or half of its assets were trapped in FTX, adding that it could take “a few years” for it to recover its assets. Other investors on FTX’s cap table include Tiger Global, Sea Capital, and Coinbase Ventures.
FTX has filed for bankruptcy, while its chief executive officer Sam Bankman-Fried has stepped down. Industry stakeholders are now bracing themselves for a rough time for the sector, as ripple effects from its collapse continue to unfold in the market.
“The coming weeks and months will be a tough time for crypto, but we remain optimistic about crypto’s potential and are committed to building towards the positive future we know it can enable,” wrote Paradigm’s Matt Huang in a tweet on Tuesday.
This has already led to a lowering of valuation asks among crypto majors like Amber Group, which is reportedly seeking a $3 billion valuation versus $10 billion recently in May, according to Bloomberg.