Singapore government under scrutiny after FTX collapse

The FTX crash has affected the cryptocurrency market globally and beyond. In addition to the obvious impacts on the cryptocurrency industry, the FTX scandal has also led to political destabilization. Most recently, the Singapore government has been criticized for its past involvement in FTX. The Prime Minister and Deputy Prime Minister have received a barrage of questions about the FTX.

The opposition party questioned the integrity and decision-making processes of the Singapore government as government-related investments involved the FTX. The opposition also recommended the creation of a committee to evaluate the risk management strategy used by the government.

For a little more context, Temasek, which is a state-owned investment company, invested approximately $210 million in FTX. Temasek then invested another $65 million in FTX US.

Temasek noted that, when they made the investments, FTX had no red flags suggesting the risk of bankruptcy. However, the government-backed company reduced the investment and its 1% stake in FTX. Companies such as Sequoia Capital did the same.

In addition to political distortions in Singapore, the FTX scandal also affected the political balance in the United States. Because SBF made political contributions to U.S. political parties, the cryptocurrency community is questioning the Biden administration and its influence on the mainstream media to mislead the public into believing that SBF is not a criminal.

Singapore remains one of the countries most affected by the FTX collapse.

It should be noted that about a year ago, Singapore authorities were forcing regulation and oversight of the Binance exchange. In the meantime, the Singapore government invested in one of the biggest catastrophes in the cryptocurrency industry.