The ongoing maelstrom over the collapse of the cryptocurrency exchange FTX continues to pull in more parties. One of the latest to be ensnared is Temasek, the international investment firm owned by the government of Singapore.
A United States class action lawsuit charges that Temasek, and others, did not do their due diligence before partnering with FTX. The lawsuit, filed on August 7, accuses the firm—along with 17 other companies—of aiding and abetting FTX’s multibillion-dollar fraud.
Temasek and Others Accused of Helping FTX Perpetrate Fraud
Temasek does not need more bad news. Last month, the firm reported a $6 billion net decline in its portfolio value compared to a year ago. As per CNBC’s July 11 report, this is the first such loss on Temasek’s books in more than ten years.
Amid the financial turmoil, Temasek now faces a bitter lawsuit over its role in promoting FTX. The suit names Temasek, Sino Global, Sequoia Capital, Softbank, and others as companies who used their “power, influence and deep pockets to launch FTX’s house of cards to its multibillion-dollar scale.”
The complaint also alleges that FTX Group illegally sold securities without proper registration. This may have deprived plaintiffs of financial and risk-related disclosures that would have influenced their decision to invest.
The suit goes so far as to accuse Temasek and the other defendants of aiding and abetting these securities law violations.
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Author: Josh Adams
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