Singapore government faces grilling from Parliament over FTX fallout

(Bloomberg) — The Singapore government is facing heightened scrutiny from the fallout from the collapse of Sam Bankman-Fried’s FTX crypto empire.

Prime Minister Lee Hsien Loong and Deputy Prime Minister Lawrence Wong face a series of parliamentary questions this week over losses suffered by retail investors and the due diligence undertaken by state-owned investor Temasek Holdings Pte, which canceled its entire $275 million investment in FTX. .

The FTX exchange collapsed into bankruptcy on November 11 and there are questions whether the platform misappropriated client funds for use by sister trading firm Alameda Research. Investors such as Sequoia Capital and the Ontario Teachers’ Pension Plan have also delisted their stakes in FTX.

Ho Ching, former general manager of Temasek, in a Facebook post over the weekend, said “a loss in what may turn out to be a poorly run business without adult supervision is an egg in our face. “. She defended Temasek’s broader strategy, saying “some of Temasek’s best investments have been made against the grain.”

An explanatory page on Temasek’s website has been updated to indicate that multiple rounds of due diligence have been undertaken in FTX and that Temasek “inquired about the relationship, preferential treatment and separation between Alameda and FTX, and received appropriate confirmations which were contractually binding”.

–With help from David Ramli and Chanyaporn Chanjaroen.

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