The Singapore government received backlash from the opposition party over the latter’s involvement in FTX.
The collapse of FTX has affected the cryptocurrency market worldwide and beyond. Aside from the obvious impact on the crypto industry, the FTX scandal has also led to political destabilization. Recently, the Singapore government has come under fire for its past involvement with FTX. The Prime Minister and Deputy Prime Minister received a lot of questions about FTX.
The opposition party is questioning the integrity and decision-making processes of the Singapore government as government-related investments involve FTX. The opposition also recommended the creation of a committee to assess the risk management strategy used by the government.
To give some context, Temasek, which is a state-owned investment company, has invested about $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 to suggest bankruptcy risk. However, the government-backed company wrote down the investment and its 1% stake in FTX. Firms like Sequoia Capital have done the same.
Aside from the political distortions in Singapore, the FTX scandal also affected the political balance in the United States. Since SBF has made political contributions to American political parties, the crypto community is questioning the Biden administration and the latter’s 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.
Note that about a year ago, the Singaporean authorities forced regulation and monitoring of the Binance exchange. Of all time, the government of Singapore has invested in one of the biggest disasters to justify the crypto industry.
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Source: The Blog
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