Temasek-backed blockchain VC firm to start new investment fund: Report

As a seasoned researcher with a keen interest in the dynamic world of blockchain and venture capital, I find myself intrigued by the recent news about Superscrypt and its proposed $100 million fund raise. With my background in understanding the intricacies of the crypto market and the lessons learned from past failures like FTX, it’s fascinating to see how firms are navigating this space post-collapse.

Reportedly, the venture capital firm, Superscrypt – which specializes in blockchain and Web3 technology and has backing from Temasek, Singapore’s state-owned investment company – is aiming to gather a $100 million investment for launching a fresh investment fund.

Based on reports from Bloomberg, it’s said that Supercript and fintech company Republic are potential collaborators for a fund that is currently under discussion. However, it’s important to note that this partnership has not yet been officially confirmed, and could still be modified or abandoned.

2022 saw Temasek making headlines following a loss of approximately $275 million, due to the collapse of FTX, a government-backed company.

About a year ago, in the year 2021, the company bought approximately 1% of FTX at an estimated cost of around $210 million. Furthermore, Temasek obtained a 1.5% minority share in a distinct entity called FTX US by spending about $65 million.

Temasek and the collapse of FTX

After the downfall of FTX, officials from Temasek stated that after thoroughly examining the previous exchange’s financial reports for several months and investigating any potential regulatory issues, they discovered no indications of fraud or warning signals.

Criticism arose among the public towards the ruling party of Singapore’s government due to their perceived inability to properly assess FTX’s potential risks prior to its bankruptcy, as well as their failure to safeguard investors from financial losses.

During that period, Lawrence Wong, a previous deputy prime minister of Singapore, stated that the significant financial losses incurred by Temasek due to the downfall of FTX had negatively impacted the investment firm’s standing with market players regarding their reputation.

In May 2023, Temasek reduced the pay of certain executives tasked with investments in FTX, acknowledging their role in a suboptimal investment choice. This financial company also carried out an internal probe, discovering no intentional wrongdoing among its staff members.

Despite the $275 million loss causing quite a stir against the state-run investment company, it accounted for just 0.09% of their total assets under management, which were valued at approximately $293 billion.

In August 2023, venture capital companies such as Temasek, Sequoia Capital, Softbank, and others who invested in FTX found themselves named in a class action lawsuit. The plaintiffs claimed that these VC firms had knowingly helped facilitate deceptive practices at the exchange.

2024-11-01 20:27

Temasek and the collapse of FTX

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