Since the collapse of one of the largest cryptocurrency exchanges, FTX, reactions from various players and institutions in the crypto industry and other related sectors around the world have been pouring in.
The fallout from the once-dominant crypto exchange has caused friction in the affairs of the Singaporean government, with the country’s prime minister being heavily criticized and questioned by members of the opposition party and the general public.
The questions are in response to the losses suffered by retailers and investors when the exchange crashed earlier this month. The implosion of the now-bankrupt cryptocurrency exchange FTX has exposed Singapore’s prime minister and the ruling administration to a slew of criticisms and backlash.
Prime Minister Lee Hsien Loong and Deputy Prime Minister Lawrence Wong are being grilled over their failure to protect retail investors.
The opposition Workers’ Party of Parliament prepared and served 15 inquiries into Temasek’s investment and the collapse of FTX. Members of the parliament questioned the government’s credibility in monitoring the level of investment by Temasek and Singapore’s GIC sovereign wealth fund.
According to Singaporean local media, on November 28, a parliamentary discussion will examine the debates surrounding the government’s policies regarding investing in digital assets in greater detail.
Members of the opposition party have proposed that a special committee question Temasek about its risk management techniques and investment strategies.
Temasek, a Singaporean state-backed investor, was one of 69 investors who contributed to the $420 million funding round for the FTX cryptocurrency exchange in October 2021.
The company had invested $210 million into the international exchange for a 1% minority stake and another $65 million into FTX.US, one of its sister companies.
The state-backed investor, however, wrote off the entire $275 million it had invested in the cryptocurrency exchange “regardless of the outcome of FTX’s bankruptcy protection filing.”
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