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Temasek Holdings Facing Class Action Lawsuit Related to FTX Collapse

Temasek Holdings is part of a pool of global firms that have been slapped with a class action lawsuit in the US.

The lawsuit was filed this week by a Connor O-Keef, who has funds frozen on FTX.

He claims the parties named in the suit, which include Sequoia Capital Operations, Sino Global Capital and Silvergate Bank, defendants knew about the alleged fraud at the company and “did not care.”

According to the lawsuit:

“Though FTX customers could not see that SBF was misappropriating their deposits on vice, vanity and speculative personal investments, defendants had full view,” the lawsuit said. “Through diligence on FTX and close ties with SBF, defendants learned that FTX was operated as SBF’s personal piggy bank, that as quickly as FTX customer funds flowed into FTX, they flowed back out to other entities SBF separately owned or controlled, and that FTX lacked the most basic internal controls, such that the enterprise was in fact a house of cards.”

“But defendants did not care. They, too, had money to make in the scheme, and their interests aligned with SBF’s.”

SBF refers to Sam Bankman-Fried, who O’Keefe alleges used FTX customer funds to prop up his crypto trading firm, Alameda Research.

He claims that there could be 2.7 million class action members in the US alone.

Temasek, which invested S$377 million has issued a statement saying it will write down the full amount of its investment in the exchange to zero “irrespective of the outcome of FTX’s bankruptcy protection filing”.

Deputy Prime Minister and Finance Minister Lawrence Wong has said that the losses suffered are “being taken seriously”.

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