How GIC and Temasek are managing your money

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Singtel's Optus to pay for new Australian passports for those affected by giant data hack​

Some Australian state governments have said they will replace the driving licences of compromised Optus customers. PHOTO: REUTERS
UPDATED

SEP 30, 2022


SYDNEY - Singtel's Optus will pay to replace passports of Australians caught up in a major cyber attack that saw the telco lose the personal information of millions of current and former customers.
Prime Minister Anthony Albanese confirmed that Optus would cough up after demands from the federal government.
"Optus has responded to the request that I made both in Parliament and that Senator (Penny) Wong made in writing to Optus... they will cover the costs of replacing affected customers' passports," he told reporters after a national Cabinet meeting.
Some Australian state governments have said they will replace the driving licences of compromised Optus customers.
It is believed that up to 9.8 million Australians had their personal data compromised in the breach, but only three million or so had identity documents like passports or driving licences exposed, and 37,000 their Medicare cards.
Of those documents, passports are the most expensive, with a replacement costing A$193 (S$180).
The Sydney Morning Herald estimated that it could cost Optus up to A$661 million to replace all the three documents for those affected. Bloomberg News reported on Thursday that the cost to Singtel of the Optus data breach - including compensation and legal bills - could amount to more than US$400 million (S$573 million).

Also on Friday, the Australian authorities said they have commenced an operation to protect the personal information of 10,000 people whose data may have been shared online after a cyber attack on Optus.
The efforts come three days after an unidentified person posted online that he had released personal details of 10,000 Optus customers and would keep doing so daily until he received US$1 million. The post was retracted within hours.
Assistant Commissioner Justine Gough of the Australian Federal Police's cyber command said the agency was working to identify and protect the same number of people whose "details have been unlawfully released".
The targeted operation, which is in addition to a global operation to track down the hacker, is the most public acknowledgment to date by police about the threat to customers, although Ms Gough declined to comment specifically on the ransom post.
"We are concerned that those 10,000 people may have had their 100-point identification compromised," Ms Gough told reporters.
Under Australian law, official documents are assigned point scores that can be used for identity verification purposes to clear sensitive transactions, which typically demand at least 100 identification points.

Passport numbers are worth 70 points, while driving licence numbers are worth 40 points, Optus has said.
Ms Gough said police were running data analysis to identify the 10,000 customers, monitoring the Internet for signs of criminals trying to sell the data, and putting banks on high alert for suspicious transactions.
She added that the authorities around the world, including the United States' Federal Bureau of Investigation, were pursuing multiple leads. REUTERS

 

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Malaysia’s sovereign wealth fund on why it did not invest in ride-hailing giant Grab​

PUBLISHED THU, AUG 4
Su-Lin Tan@SULIN_TAN

• Chief Investment Officer Azmil Zahruddin told CNBC the fund’s investment strategy was to focus on large investments — not direct startup deals.
• “Our DNA is that we manage large investments. VC investing is not really what we do, and it’s not really our expertise and skill set,” Zahruddin told CNBC.
• But Khazanah would continue to deploy funds into the technology sector and has been doing so in the past 10 years, he said.

WATCH NOW
VIDEO02:57
Malaysia’s sovereign wealth fund says VC investing is not what we do

Malaysia’s sovereign wealth fund Khazanah Nasional has defended its decision not to make an early investment in Southeast Asia’s ride-hailing and food delivery superapp Grab.
Chief Investment Officer Azmil Zahruddin told CNBC the fund’s investment strategy was to focus on large investments — not direct startup deals.

Khazanah could not close an early deal to fund the Malaysian-founded Grab.
Other investors including Singapore’s state-owned investor Temasek eventually took a stake in Grab and the ride-hailing giant moved its headquarters to Singapore. The company went on to raise $4.5 billion and listed on Nasdaq in late 2021 through a SPAC merger with Altimeter Growth Corp, making Grab the biggest listing in the U.S. by a Southeast Asian company.
Khazanah came under criticism for what some have said was a “missed opportunity” for Malaysia.

Anthony Tan, chief executive officer of Grab Holdings Inc., center right, and Tan Hooi Ling, co-founder of Grab Holdings Inc., celebrate on stage during a bell-ringing ceremony as Grab begins trading on the Nasdaq, in Singapore, on Thursday, Dec. 2, 2021.
Ore Huiying | Bloomberg | Getty Images
“You have to look at what Khazanah is and what its DNA is,” Zahruddin said in an exclusive interview with “CNBC Squawk Box Asia” on Thursday.
“Our DNA is that we manage large investments. [Venture capital] investing is not really what we do, and it’s not really our expertise and skill set.”

“So what we try to do is, instead of trying to do those investments directly, we actually seed investments into VC funds who then invest into companies around the region.”
Zahruddin agreed, however, that it was important for Malaysia to support its entrepreneurs and retain its talent.

He said Khazanah would continue to help Malaysian startups through an indirect approach of investing into funders that take a stake in these new companies and potentially investing in them directly after they have matured to a size that meets the fund’s investment criteria.
To that end, Zahruddin said Khazanah invested in Grab’s competitor Uber through an intermediary funder which was willing to invest in Uber at an early stage.
Khazanah’s investment in the foreign-owned Uber instead of Grab, which was started by two Malaysians, raised eyebrows in the Malaysian investment community.

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Grab dominates ride-hailing in Singapore and operates across Southeast Asia. The company has been suffering losses since its listing last year and in its latest results for the first quarter, Grab posted a net loss of $435 million although revenue has risen to $228 million — up 6% year-on-year.

Outlook for venture capital markets​

Zahruddin said the venture capital markets have been quite challenging and many endowment funds that have been active in venture capital have seen their investments fall by up to 40% in the past year.
But Khazanah would continue to deploy funds into the technology sector and has been doing so in the past 10 years.
“In hindsight, it is a good thing that we’re not really able to do direct investments anyway, because that is something that is quite challenging for anyone who’s been in VC,” Zahruddin said.

In hindsight, it is a good thing that we’re not really able to do direct investments anyway, because that is something that is quite challenging for anyone who’s been in VC.
Azmil Zahruddin
KHAZANAH NASIONAL

Khazanah posted a nearly 80% drop in annual profits in 2021 to 670 million Malaysian ringgit, or $150.36 million. The year before profits also fell about 60% to RM $2.9 billion.
The sovereign wealth fund said the fall in profits were due to its continued extension of financial assistance to its airlines and tourism investments suffering from Covid-19 disruptions.
Last month, Khazanah announced it would explore new investment opportunities in Turkey following a meeting between representatives from the fund and the Turkey Wealth Fund in Istanbul.

 

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Singtel says media reports on potential hefty costs from Optus cyber attack 'speculative'​

Up to 9.8 million Australians were said to have had their personal data compromised in the Optus breach. PHOTO: REUTERS

Adeline Tan


OCT 3, 2022

SINGAPORE - Singtel said on Monday that media reports citing potential fines or costs from the massive cyber breach that affected nearly 10 million accounts of its Australian unit Optus are "speculative" and the company is still making its own assessment.
"Singtel is continuing to evaluate the potential financial implications arising from this matter and any material development will be disclosed to the market on a timely basis," it said in a Singapore Exchange filing.
Singtel added: "While no legal notice of a class action has been received, lawyers have been engaged to advise. Any class action will be vigorously defended, if commenced."
At least two major law firms, Slater & Gordon and Maurice Blackburn, have said they are investigating a possible class action against Optus to claim compensation for people affected by the breach, Reuters reported.
Up to 9.8 million Australians were said to have had their personal data compromised in the breach, with three million or so having identity documents like passports or driving licences exposed, and 37,000 their Medicare cards.
The Sydney Morning Herald estimated last week that it could cost Optus up to A$661 million (S$610 million) to replace all three documents for those affected. Bloomberg reported that the data breach could cost Singtel between US$420 million (S$602 million) and US$560 million, wiping out more than a quarter of its annual profit.
In its Monday statement, Singtel said media reports citing potential fines or costs are "speculative at this juncture" and "advises that they should not be relied upon".

It also announced that Optus has appointed Deloitte to conduct an independent external review of the recent cyber attacks, and its security systems, controls and processes.
The review, which was recommended by Optus chief executive officer Kelly Bayer Rosmarin, was supported unanimously by the Singtel board, "which has been closely monitoring the situation with management since the incident came to light", Optus said.
As part of the review, Deloitte will undertake a forensic assessment of the cyber attack and the circumstances surrounding it.
Singtel shares were down two cents, or 0.75 per cent, at $2.64 as at 10.27am on Monday, after the release of its statement.
On Sunday, the Australian government dished out its harshest criticism yet against Optus, and blamed the telco for the breach that reportedly affected 40 per cent of the population.

It urged the company to speed up its notification to 10,200 customers whose personal information was released, with Home Affairs Minister Clare O'Neil saying in a televised news conference that it is important that Australians take as many precautions as they can to protect themselves from financial crime.
Optus said on Sunday that it was working closely with federal and state government agencies to determine which customers need to take any action, but was still seeking further advice on the status of customers whose details had expired.
The company also ran a full-page apology in major Australian newspapers last Saturday. An unidentified person later posted online that the hackers had released personal details of 10,000 Optus customers and would keep doing so daily until they received US$1 million.
The Australian police's operations to find the person or people behind the breach at Optus is “progressing well”, Ms O'Neil said. The police will provide an update this week.

 

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Credit Suisse shares hit record low as CEO fails to calm markets​

Credit Suisse's market capitalisation has dropped to around 9.5 billion Swiss francs. PHOTO: REUTERS

Oct 3, 2022

ZURICH - Credit Suisse Group hit a fresh record low after attempts to reassure markets on its financial stability only added to the sense of turmoil surrounding the troubled Swiss bank.
The shares dropped as much as 12 per cent in Zurich trading on Monday to 3.52 Swiss francs. The bank has lost about 60 per cent of its market value just this year alone and is on track for the biggest ever annual drop in its history.
Chief executive Ulrich Koerner had sought to calm employees and the markets over the weekend after the stock touched a record low and credit default swaps (CDS) climbed last week. While touting the bank's capital levels and liquidity, he acknowledged that the firm was facing a "critical moment" as it worked towards its latest overhaul plans.
He also told employees that he will be sending them a regular update until the firm announces the new strategic plan on Oct 27 because of the speculation surrounding the lender. At the same time, Credit Suisse again sent around talking points to executives dealing with clients who brought up the CDS, according to sources with knowledge of the matter.
The cost of insuring the firm's bonds against default climbed about 15 per cent last week to levels not seen since 2009. Some clients have used the rise in the bank's CDS this year to ask questions, negotiate prices or use competitors, the sources said, asking to remain anonymous discussing confidential conversations.
Credit Suisse declined to comment via a company spokesman.
Mr Koerner, named CEO in late July, has had to deal with market speculation, banker exits and capital doubts as he seeks to set a path forward. The lender is currently finalising plans that will likely see sweeping changes to its investment bank and may include cutting thousands of jobs over a number of years, Bloomberg has reported.

Mr Koerner's memo was the second straight Friday missive as speculation over the beleaguered bank's future increases.
Analysts at KBW estimated that the firm may need to raise 4 billion Swiss francs (S$5.81 billion) of capital even after selling some assets to fund any restructuring, growth efforts and any unknowns.
Credit Suisse's market capitalisation has dropped to around 9.5 billion Swiss francs, meaning any share sale would be highly dilutive to long-time holders. The market value was above 30 billion francs as recently as March 2021.

Bank executives have noted that the firm's 13.5 per cent common equity tier 1 capital ratio at June 30 was in the middle of the planned range of 13 per cent to 14 per cent for 2022.
The firm's 2021 annual report said that its international regulatory minimum ratio was 8 per cent, while the Swiss authorities required a higher level of about 10 per cent.
The five-year CDS price of about 250 basis points is up from about 55 basis points at the start of the year and is near their highest on record.
While these levels are still far from distressed and are part of a broad market sell-off, they signify deteriorating perceptions of creditworthiness for the scandal-hit bank in the current environment.
The KBW analysts were the latest to draw comparisons to the crisis of confidence that shook Deutsche Bank six years ago.


Then, the German lender was facing broad questions about its strategy as well as near-term concerns about the cost of a settlement to end a United States probe related to mortgage-backed securities. Deutsche Bank saw its CDS climb, its debt rating downgraded and some clients step back from working with it.
The stress eased over several months as the German firm settled for a lower figure than many feared, raised about €8 billion (S$11.2 billion) of new capital and announced a strategy revamp. Still, what the bank called a "vicious circle" of declining revenue and rising funding costs took years to reverse.
There are differences between the two situations. Credit Suisse does not face any one issue on the scale of Deutsche Bank's US$7.2 billion (S$10.35 billion) settlement, and its key capital ratio of 13.5 per cent is higher than the 10.8 per cent that the German company had six years ago.
The stress Deutsche Bank faced in 2016 resulted in the unusual dynamic where the cost of insuring against losses on the lender's debt for one year surpassed that of protection for five years. Credit Suisse's one-year swaps are still significantly cheaper than five-year ones.
Last week, Credit Suisse said it is working on possible asset and business sales as part of its strategic plan which will be unveiled at the end of October. The bank is exploring deals to sell its securitised products trading unit, is weighing the sale of its Latin American wealth management operations excluding Brazil, and is considering reviving the First Boston brand name, Bloomberg has reported. BLOOMBERG

 

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Second Australian business owned by SingTel suffers data hack after Optus breach​

Signtel-owned technology consulting company Dialog was hit by a cyberattack on Sept 10, 2022. ST PHOTO: KUA CHEE SIONG

PUBLISHED

OCT 10, 2022

SYDNEY - A second Australian business owned by Singapore Telecommunications suffered a cyberattack, compounding the data-security crisis at the company following the huge data breach at mobile-phone operator Optus.
A hack on technology consulting company Dialog, which SingTel bought earlier this year, may have accessed data on fewer than 20 clients and 1,000 current and former staff, according to a Dialog statement issued by SingTel on Monday.
Dialog found out on Oct 7 that a "very small sample" of its data, including personal employee information, had been published on the so-called Dark Web. The attack itself took place almost a month earlier, on Sept 10.
A second hack at a SingTel-owned business raises questions about cybersecurity at the broader group, the timeliness of breach disclosures, and whether the Singapore parent is being deliberately targeted.
Another Australian subsidiary of SingTel, Optus, last month revealed a vast security breach had exposed details of 9.8 million former and current customers in one of the country's biggest-ever hacks.
More than 2 million people had identity document numbers compromised, triggering concerns about widespread financial fraud.
A subsidiary of SingTel, NCS, announced the acquisition of Dialog in March for A$325 million (S$297 million).

Dialog's systems are completely independent from those of SingTel, NCS and Optus, and there is no evidence that the two recent incidents are linked, SingTel said.
According to Dialog's website, the firm's clients include some of Australia's biggest and best-known companies. They include National Australia Bank and airline Virgin Australia, as well as several state and federal government departments.
"We are doing our utmost to address the situation and, as a precaution, we are actively engaging with potentially impacted stakeholders to share information, support and advice," Dialog said in its statement.
The hacks threaten to become an expensive lapse for the Singapore company.
Optus is already paying for replacement drivers licences and passports, and total costs including bills and fines could stretch into hundreds of millions of dollars, according to some estimates. BLOOMBERG

 

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Two Australian regulators open investigations into SingTel's Optus after data breach​

Optus has come under heavy fire from the Australian government and the public for not preventing the massive cyberattack. PHOTO: REUTERS

Oct 11, 2022

SYDNEY - Two Australian regulators said on Tuesday they have opened investigations into Optus, the country's No. 2 telecoms provider, after a breach of its systems resulted in the theft of personal data from up to 10 million accounts.
The probes only add to headaches for Optus, which disclosed the breach on Sept 22 and has since come under heavy fire from the government and the public for not preventing the massive cyberattack.
The Office of the Australian Information Commissioner (OAIC) said it was investigating whether the Singtel-owned company took reasonable steps to protect customer data and comply with privacy laws.
The Australian Communications and Media Authority (ACMA) said it was investigating whether Optus met its industry obligations as a telecommunications provider in terms of the keeping and disposing of personal data.
Amid the widening fallout, the federal government has flagged it will overhaul data security laws to force firms which have had a cyberattack to notify banks about customers who may be compromised. Several law firms are also considering filing class action lawsuits.
The OAIC said in a statement if it finds that "interference with the privacy of one or more individuals has occurred", it may force Optus to take steps to ensure the breach cannot be repeated.
The agency added that it finds there was a breach of Australian privacy law, it can seek civil penalties of up to A$2.2 million (S$2 million) per contravention.


ACMA Chair Nerida O'Loughlin said in a statement that failure by telecommunications providers to safeguard customer information "has significant consequences for all involved".
Australian Competition and Consumer Commission Chair Gina Cass-Gottlieb told a parliamentary hearing the regulator was receiving 600 calls a day from people concerned about the Optus breach, although few had been scammed as a result. REUTERS

 

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Temasek went overweight in China a few years ago.

China’s richest lose $12.8 billion in sell-off after Xi’s leadership reshuffle​

Tencent Holdings founder Pony Ma lost more than US$2 billion shares of their companies tumbled. PHOTO: BLOOMBERG

Oct 25, 2022


SHANGHAI – The richest tycoons doing business in China have lost more than US$9 billion (S$12.8 billion) in the market sell-off that followed President Xi Jinping’s tightening grip on the government.
Tencent Holdings founder and chief executive Pony Ma and Mr Zhong Shanshan, chairman and founder of bottled water giant Nongfu Spring and the nation’s wealthiest person, each lost more than US$2 billion on Monday as shares of their companies tumbled after the Communist Party’s leadership reshuffle, according to the Bloomberg Billionaires Index.
Alibaba Group Holding’s Mr Jack Ma, Baidu’s Mr Robin Li and JD.com’s Mr Richard Liu are not included as their firms’ primary listings are in the United States.
President Xi’s move to put his closest allies at the top of the leadership ranks is raising concern that China’s crackdown on wealth and private businesses will continue.
An index tracking the nation’s shares listed in Hong Kong sank more than after any Communist Party Congress since the index’s inception in 1994.
Foreigners sold a record amount of stocks via trading links in the city, while the renminbi weakened to its lowest level since January 2008.
“The slump today reflects the fragile investor sentiment,” said Mr Kenny Wen, head of investment strategy at KGI Asia in Hong Kong. “People are just trying to hold on and look for more implications for the Chinese economy after the reshuffle.”

Even before Monday’s slump, China’s wealthiest people were on track for their worst year in a decade as Mr Xi’s strict Covid-19 policies took a toll on the economy. As at last Friday, there were 76 Chinese billionaires worth US$783 billion among the world’s 500 richest people, compared with 79 tycoons with a US$1.1 trillion net worth at the end of last year, according to Bloomberg’s wealth index.
While Mr Xi’s reappointment for a precedent-breaking third term is not a surprise, his elevation of loyalists is breaking from the collective leadership model that underpinned the nation’s rise, with now fewer voices at the top to question his policies.
The move indicates that the nation is likely to stick with its stringent Covid-19 approach, which has hurt the economy. A slew of data released on Monday after abrupt delays last week showed a mixe

 

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Temasek engaging with FTX as Binance bailout plan fuels uncertainty in crypto market​

Binance’s plan to bail out the cryptocurrency exchange FTX has sent jitters rippling through the industry. PHOTO: REUTERS

Claire Huang
Business Correspondent

Nov 9, 2022

SINGAPORE - Singapore’s state investor Temasek says it is engaging with FTX in its capacity as a shareholder in the wake of Binance’s plan to bail out the cryptocurrency exchange, which has sent jitters rippling through the industry.
Such a power shift would make Binance reign supreme in the crypto world, and observers told The Straits Times that this could add more uncertainty to the industry, following a spate of insolvencies that has shaken investor confidence and shrunk funding.
This comes as a liquidity crunch pushed FTX to the brink of collapse in recent days – a far cry from January this year when the exchange was valued at US$32 billion (S$45 billion), with backing from blue-chip investors such as BlackRock, SoftBank, Canada’s Ontario Teachers’ Pension Plan and Temasek.
Temasek said in a reply to queries that it is aware of the developments between FTX and Binance and is engaging FTX in its capacity as shareholder. “Given the ongoing discussions between both companies, it wouldn’t be appropriate for us to comment beyond that.”
FTX’s woes come as the price of its native token, FTT, plunged to under US$5 from US$22 on Tuesday, wiping out more than US$2 billion in a space of 24 hours.
In the 72 hours before Tuesday morning, FTX experienced US$6 billion in withdrawals.
The unfolding saga between Binance founder Changpeng Zhao and FTX’s Sam Bankman-Fried turned into a public row in recent days in a series of tit-for-tat tweets.

Binance had invested in FTX in late 2019 before exiting in July last year.
On Sunday, Mr Zhao said in a tweet that Binance would liquidate its US$580 million FTT stake as part of its exit from FTX.
The next day, he tweeted that “we won’t support people who lobby against other industry players behind their backs”, in a thinly veiled reference to Mr Bankman-Fried.

The day before Mr Zhao’s tweets, FTT was trading at around US$25.
In September 2021, FTT had peaked at US$78.
In a spectacular comedown, Mr Bankman-Fried initially assured the market in a now-deleted tweet that “FTX is fine” and that “a competitor is trying to go after us with false rumours”.
But by early Wednesday, Mr Bankman-Fried announced in a tweet that FTX and Binance have signed a non-binding agreement to buy FTX’s non-United States unit in a dramatic bailout.
“The key right now is to have confidence and certainty in the market.
“We don’t want this to be 2008 where banks stopped lending due to uncertainty,” said Mr Oscar Franklin Tan, the chief financial officer and chief legal officer of Singapore-based non-fungible token ecosystem Enjin.
Mr Leonard Hoh, the Asia-Pacific general manager at exchange Bitstamp, said in a nascent industry, positive developments will provide stability and the right infrastructure to support market needs.
Innovation and accountability, in part, come from having healthy competition, he said, adding that the future of the global crypto ecosystem will support multiple service providers.
It would be rash to assume that a monopoly could be formed at this early stage, Mr Hoh added.


Mr Daniel Lee, head of Web3 at payments bank Banking Circle, noted that a silver lining of the takeover is that one group will set standards in the industry, making it easier to implement requirements on Know Your Client and anti-money laundering processes.
But he warned of a concentration risk and that such an acquisition will bring crypto into a more centralised model instead of what it should be – decentralised.
Managing director of exchange Bitget, Ms Gracy Chen, thinks it is “highly unlikely” that Binance will succeed in the takeover.
She questioned why Binance would spend money to buy over FTX, which has serious liquidity problems.
“To conclude, acquiring FTX isn’t a valuable trade, and CZ’s (Mr Zhao’s) goal is already achieved.
“Even if Binance buys FTX, it’s (a) harm to industry and a humiliation to decentralisation.
“For Binance, it might be a short-term victory written into a case study, but will backfire in the long term,” Ms Chen said.

The events come after a crypto rout that was sparked by the crash of popular stablecoin TerraUSD and its sister token Luna in May.
The collapse of the stablecoin triggered a contagion that sent key names in the business, including hedge fund Three Arrows Capital, exchange Celsius and brokerage Voyager Digital into insolvency. In September, FTX’s US unit won the bid to buy Voyager Digital’s remaining assets and paved the way at that time for users to get some money back.
But the series of insolvencies had sent prices of crypto falling, with about US$2 trillion wiped out from the market.
Major cryptocurrencies on Wednesday fell heavily as investors get jittery over the Binance-FTX deal.
Crypto darling Bitcoin fell by almost 8 per cent at the time of writing to US$18,252, its lowest in a year based on Coindesk data. Ether was down nearly 15 per cent to US$1,274, the lowest in four months.

 

[Majulah]

Singtel's Optus to pay for new Australian passports for those affected by giant data hack​

no worrry sing an tell going to demolish comcentre and rebuild into a office cum shopping centre. huat ahh

 

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Crypto exchange Binance calls off acquisition of FTX​

Binance had offered to come to FTX's rescue on Tuesday. PHOTO: REUTERS

NOV 10, 2022

NEW YORK – Binance, the world’s biggest cryptocurrency platform, said in an abrupt reversal on Wednesday that it was scrapping plans to acquire rival FTX.com, citing reports of mishandled customer funds and alleged government probes.
The development is a further blow to FTX founder Sam Bankman-Fried, who is considered a cryptocurrency wunderkind, but has suffered a spectacular reversal of fortune.
Binance is owned by Mr Bankman-Fried’s one-time bitter rival, Mr Zhao Changpeng, who accused FTX of being insolvent before offering to come to the rescue on Tuesday.
“We have decided that we will not pursue the potential acquisition of FTX.com,” Binance said on Twitter a day after disclosing it signed a non-binding letter of intent to buy FTX.
“In the beginning, our hope was to be able to support FTX’s customers to provide liquidity, but the issues are beyond our control or ability to help,” Binance said.
The company also mentioned recent press reports about mismanagement of client funds and investigations by United States regulators.


Doubts have been growing about the financial stability of FTX despite Mr Bankman-Fried’s good standing in Washington as a public face of crypto investing.

Attention has focused on the relationship between FTX and Alameda Research, a trading house also owned by Mr Bankman-Fried that was taken down from the Internet on Wednesday, reports said.
Mr Zhao on Tuesday said his group had signed a non-binding letter of intent “to fully acquire FTX.com”, which is suffering from “a significant liquidity crunch”.
Bitcoin and other cryptocurrencies continued to slump on Wednesday on the fallout from FTX’s woes.
The crypto industry is still licking its wounds since so-called stablecoin TerraUSD and a linked token, Luna, collapsed in May this year, knocking tens of billions of nominative value off the market.
The slump for Bitcoin, meanwhile, comes after recent strong gains for the world’s leading cryptocurrency.
There are currently more than 10,000 cryptocurrencies, following the creation of Bitcoin in 2008. AFP

Top crypto exchanges by volume​

Here is a list of the biggest crypto exchanges in terms of volume this year, according to analytics website CoinGecko.

• Binance – US$4.953 trillion
• OKX – US$960.93 billion
• UpBit – US$800.00 billion
• Coinbase – US$775.09 billion
• FTX – US$626.69 billion
• KuCoin – US$554.87 billion
• Crypto.com – US$453.96 billion
• Huobi – US$452.62 billion
• Gate.io – US$433.83 billion
• Kraken – US$237.48 billion

Note: Figures denote year-to-date exchange volume

 

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Did Temasek do any due diligence before investing in FTX?

 

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Exclusive: These FTX Investors Stand To Lose The Most From The Crypto Exchange’s Implosion​

Chase Peterson-Withorn
Forbes Staff

Nov 10, 2022

ILLUSTRATION BY GRACELYNN WAN FOR FORBES; PHOTO BY GUERIN BLASK FOR FORBES
Note: On Friday, both FTX and FTX U.S. filed for bankruptcy and Bankman-Fried resigned as CEO, raising the likelihood that investors in each entity will end up losing the vast majority, if not all, of their investment.


No one is set to lose more from FTX’s implosion than Sam Bankman-Fried, the crypto wunderkind who founded the exchange and then drove it into the ground this week. His net worth, once as high as $26.5 billion, has plummeted to less than a billion dollars–one of the fastest falls from the billionaires ranks ever. FTX users and employees may be in for big losses too, with Bankman-Fried now trying to cobble together emergency funding to cover a shortfall of up to $8 billion as customers demand their money back. “I can't make any promises,” he tweeted Thursday. “But I'm going to try.”

Then there are FTX’s investors.

As the crypto exchange ballooned in size, it became a huge draw for venture capitalists eager to get in on the Bitcoin boom. In June 2021, FTX raised $1 billion at an $18 billion valuation from venture investors such as Paradigm, SoftBank and Sequoia Capital. Three months later, FTX brought in a $421 million haul, pushing its valuation to $25 billion, from investors like Singapore-government owned investment firm Temasek, Tiger Global Management and the Ontario Teachers’ Pension Plan. By January of this year, crypto prices were on the decline, but FTX charged ahead. Investors, many of whom had also pumped money into the earlier rounds, put another $400 million into FTX–at a $32 billion valuation.

That $32 billion figure has gone up in smoke. So has the $1.8 billion-plus of capital that investors pumped into FTX over the course of three years: At least two major shareholders are marking their investment in FTX down to $0: venture capital firm Sequoia and, reportedly, crypto-focused firm Paradigm. Forbes did the same, dropping Bankman-Fried and cofounder Gary Wang from our billionaire’s list Wednesday, based on the collapse of both FTX and the pair’s trading firm, Alameda Research.
In a strict sense, FTX’s investors’ losses are limited to the $1.8 billion or so they put into the business. But their paper losses are much, much higher. If any of these investors had cashed out in January, when FTX peaked at the $32 billion valuation, they’d be tens or even hundreds of millions dollars richer. Instead, they could well end up with nothing.

Who will lose the most? Forbes has a list of FTX shareholders, sent to us by Sam Bankman-Fried in August during our reporting for The Forbes 400 list. Here are the venture capital firms, the pension plan–and two celebrity endorsers–who have a lot to lose if FTX can’t be saved.​

(This analysis does not include shares of FTX U.S., the exchange’s American operations, which raised $400 million at an $8 billion valuation concurrent with FTX’s series C round in January. It’s possible that losses from FTX U.S. will push some investors’ total investment in Sam Bankman-Fried’s empire even higher.)

According to the capitalization table Sam Bankman-Fried sent Forbes in August, investors who stand to lose big if FTX goes to zero include employees, investment firms and Ontario teachers'' pensions.
FORBES

SEQUOIA CAPITAL​

Stake in FTX: 1.1%​

Estimated amount invested (FTX only): $200 million​

Value at January 2022 peak: $350 million​

The Silicon Valley VC fund–famed for its investments in tech giants like Apple, Google and Airbnb–bought into FTX’s series B and B-1 rounds alongside Sequoia Capital Global Equities, a separate entity–to the tune of more than $200 million, according to a letter Sequoia shared on Twitter Wednesday. “FTX is the high-quality, global crypto exchange the world needs,” Sequoia partner Alfred Lin said in June 2021, after the series B round. “Sam is the perfect founder to build this business, and the team's execution is extraordinary.”
The warm feelings were mutual: According to a report published by The Information on Thursday, Alameda Research and Bankman-Fried-backed VC fund FTX Ventures committed “hundreds of millions of dollars” to funds run by Sequoia and two other firms.
The value of Sequoia’s investments in FTX peaked at $350 million earlier this year, marking what is the largest likely loss for an outside investor in the exchange. Sequoia said in its letter to its investors that its FTX stake represented less than 3% of the committed capital of one fund, and the fund’s $150 million loss is offset by about $7.5 billion in realized and unrealized gains.

TEMASEK​

Stake in FTX: 1%​

Est. amount invested: $205 million​

Value at January 2022 peak: $320 million​

An investment company owned by the government of Singapore, Temasek is the second-largest outside investor on the capitalization table, with 7 million shares. The $297 billion (assets) business, which owns big stakes in Singapore’s DBS Group and Singapore Airlines, invested in all three of FTX’s major funding rounds. With its $320 million stake on the brink of being worthless, a Temasek spokesperson told Reuters on Wednesday that they were “aware of the developments” and were “engaging FTX in our capacity as shareholder."

PARADIGM​

Stake in FTX: 1%​

Est. amount invested: $215 million​

Value at January 2022 peak: $315 million​

Paradigm, an investment firm “focused on supporting the crypto/Web3 companies and protocols of tomorrow,” invested in the exchange’s series B and C rounds and owned nearly 7 million shares of FTX as of August. “There's a bright future ahead for Sam and FTX,” Paradigm cofounder Matt Huang said in July 2021, “and Paradigm is excited to be a part of it."
According to The Information, Alameda Research also invested at least $20 million in Paradigm.

ONTARIO TEACHERS’ PENSION PLAN​

Stake in FTX: 0.4%​

Est. amount invested: $80 million​

Value at January 2022 peak: $125 million​

The Ontario Teachers' Pension Plan, which manages the retirement funds of 333,000 teachers in the Canadian province, invested a total of $95 million between FTX and FTX U.S. in late 2021 and early 2022. The FTX portion of that investment alone was worth an estimated $130 million following FTX’s series C round–before the crypto winter and current crisis. “While there is uncertainty about the future of FTX,” Ontario Teachers’ wrote in a statement, “any financial loss on this investment will have limited impact on the plan, given this investment represents less than 0.05% of our total net assets.”

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While these are the main shareholders identified on the capitalization table obtained by Forbes, there are other big investors not mentioned who have likely lost big. The rest of FTX’s series B investors, who bought into the $1 billion round in June 2021, own another 3.5% of the exchange. These investors include entities tied to billionaires Paul Tudor Jones, Daniel Loeb and Israel Englander, plus firms like Tiger Global Management and SoftBank–both of which also got in on FTX’s series C round in January, likely making them substantial shareholders as well. Investors from that round, not including Temasek and Paradigm, own nearly 1% of FTX, according to the capitalization table, putting their paper losses north of $270 million. Big numbers, but drops in the bucket for these funds, which often have so much capital they can afford to put large sums into scores of risky unicorns, so long as at least one or two pans out.
At least two famous faces who inked endorsement deals with FTX are poised to lose, too. NFL legend Tom Brady and fashion model Gisele Bundchen owned 0.15% and 0.09% of FTX as of June 2021, respectively, according to an earlier capitalization table also shared with Forbes by Bankman-Fried. Accounting for assumed dilution in the subsequent funding rounds, Forbes estimates their ownership in FTX at 0.14% and 0.08%, respectively. It’s unclear how much the ex-couple invested for their shares, but Brady’s estimated stake would have been worth $45 million, and Gisele’s worth $25 million, before crypto prices fell and Bankman-Fried took a flamethrower to their investment.
Among the most impacted: FTX employees. According to the capitalization table, the company’s option pool held 20,858,124 shares, or about 3% of FTX, as of August. That stake would have been worth as much as $950 million in January. Now it’s likely worthless. Will they get that money back? Bankman-Fried has made his priorities clear: Users first, according to a series of tweets he posted Thursday, then he’ll focus on investors–“old and new”–then Bankman-Fried says he’ll take care of workers. Well, those who “have fought for what's right for their career,” he clarified, “and who weren't responsible for any of the f*ck ups.”

 

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FTX goes bankrupt in stunning reversal for crypto exchange​

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FTX founder Sam Bankman-Fried at the Crypto Bahamas conference in Nassau on April 27, 2022. The downfall of his crypto empire means assets owned by the mogul have become worthless. PHOTO: NYTIMES


NOV 11, 2022

LONDON - Crypto exchange FTX is to start US bankruptcy proceedings and chief executive Sam Bankman-Fried is to step down, after a liquidity crisis at the cryptocurrency group that has prompted intervention from regulators around the world.
The distressed crypto trading platform had been struggling to raise billions of dollars in funds to stave off collapse after a wave of withdrawals.
The company said in a statement on Friday, shared via a tweet, that FTX and its affiliated crypto trading fund Alameda Research and approximately 130 other companies have commenced voluntary Chapter 11 bankruptcy proceedings in Delaware.
“I’m really sorry, again, that we ended up here,” said Mr Bankman-Fried, in a series of tweets after the commencement of the bankruptcy filing.
In his tweets, Mr Bankman-Fried said the bankruptcy filing “doesn’t necessarily have to mean the end for the companies” and that he was “optimistic” the group’s new CEO would “help provide whatever is best”. Mr John J. Ray III has been appointed to take over as CEO from Mr Bankman-Fried, who will assist with an orderly transition.
The week-long saga that began with a run on FTX and an abandoned takeover deal by rival Binance has hit an already struggling Bitcoin and other tokens.
FTX was scrambling to raise about US$9.4 billion (S$12.92 billion) from investors and rivals, Reuters reported citing sources, as the exchange sought to save itself after customer withdrawals.


Singapore global investment company Temasek is estimated to have invested US$205 million in FTX, with its investment hitting a value of US$320 million at its peak in January 2022.
Some investors, including Sequoia and SoftBank, had already marked down their FTX investments to zero.
As FTX’s troubles mounted, regulators around the world stepped in. FTX is under investigation by the United States’ Securities and Exchange Commission, Justice Department and Commodity Futures Trading Commission, according to a source familiar with the investigations.

Cyprus’ Securities and Exchange Commission asked FTX EU to suspend its operations on Nov 9, the regulator said on Friday.
That is on top of the Bahamas freezing FTX.com’s assets, and the general counsel of FTX.US telling staff he is working with advisers to preserve what they can of the exchange.
The predicament marks a rapid reversal for Mr Bankman-Fried, the 30-year-old FTX founder.
The downfall of his crypto empire means assets owned by the mogul once likened to Mr John Pierpont Morgan have become worthless. At the peak, he was worth US$26 billion, and he was still worth almost US$16 billion at the start of the week.

The Bloomberg Billionaires Index now values FTX’s US business – of which Mr Bankman-Fried owns about 70 per cent – at US$1 because of a potential trading halt, from US$8 billion in a January fund-raising round.
Mr Bankman-Fried’s stake in Robinhood Markets valued at more than US$500 million was also removed from his wealth calculation after Reuters reported it was held through his trading house, Alameda Research, and may have been used as collateral for loans.
His empire crumbled this week after a liquidity crunch at one of FTX’s affiliates. Its US exchange, FTX.US, said on Thursday that customers should close out any positions they want to and that trading may be halted in a few days.
It is possible Mr Bankman-Fried owns assets not tracked by the Bloomberg index. Alameda made about US$1 billion in profits last year and FTX made hundreds of millions more.
Bitcoin dropped after FTX’s announcement, falling as much as 8 per cent to US$16,376. The world’s largest cryptocurrency fell to a two-year low of US$15,632 on Wednesday before regaining some ground in a cross-asset rally after US inflation data.
FTX’s token FTT plunged 34 per cent on Friday to US$2.43, facing an 89 per cent weekly loss. BLOOMBERG, REUTERS

 

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Singapore’s Temasek to write down over US$200 million in FTX​

Another backer, Sequoia Capital, wrote down the full value of its US$214 million bet on FTX. REUTERS

Nov 16, 2022

SINGAPORE – Singapore’s state-owned investor, Temasek International, invested between US$200 million and US$300 million into cryptocurrency firm FTX before its implosion, according to people familiar with the matter.
Temasek is now preparing to write off the entire amount, one of the people said, asking not to be identified as the matter is private. Another backer, Sequoia Capital, wrote down the full value of its US$214 million bet on the exchange, while a person with knowledge of the situation said SoftBank Group Corp. is expecting a loss of around US$100 million on its investment.
A Temasek representative declined to comment.
The meltdown of Sam Bankman-Fried’s FTX empire and the evaporation of capital from its institutional backers is shaking confidence throughout the crypto world. The firm had been considered by some investors as one of the safer bets in the sector thanks to its size and role as an exchange, rather than being just an active manager of digital currency.
A potential FTX writedown wouldn’t have a major impact on Temasek’s overall financial standing. The Singaporean firm, which managed S$403 billion in assets as of March 31, said in July it didn’t invest in crypto directly, focusing instead on building the ecosystem. When asked about the valuations of FTX and Amber Group, another crypto company it backed, Temasek US West Coast head Martin Fichtner expressed confidence in the long-term performance of its portfolio companies.
“What we focus on is this: Are the businesses healthy and are they growing, and do we think the prospects are strong?” he said at the time. “We feel strongly about the companies in our portfolio performing well over time, and we’ll see cycles in terms of multiples go up and down as the cycles occur.”
Since then, FTX has filed for Chapter 11 bankruptcy and Bankman-Fried has stepped down as its chief executive officer. Amber, which was seeking to raise funds at a US$10 billion valuation earlier this year, is now aiming for a US$3 billion value. BLOOMBERG

 

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Temasek to write down $377 million in FTX, says belief in Bankman-Fried appears to be ‘misplaced’​

Temasek said the total cost of its investment in FTX was 0.09 per cent of its net portfolio value of S$403 billion. PHOTO: REUTERS

Claire Huang
Business Correspondent

NOV 18, 2022

SINGAPORE - Temasek will write off its US$275 million (S$377 million) investment in cryptocurrency company FTX, “irrespective of the outcome of FTX’s bankruptcy protection filing”.
In a statement issued early on Thursday, the investment company said the total cost of its investment in FTX was 0.09 per cent of its net portfolio value of $403 billion as at end-March.
It invested US$210 million for a minority stake of about 1 per cent in FTX International, and pumped in another US$65 million for a minority stake of about 1.5 per cent in FTX US, which is the American subsidiary.
These investments were carried out across two funding rounds from October 2021 to January 2022.
The shocking collapse of Mr Sam Bankman-Fried’s FTX empire due to liquidity woes has shaken the crypto world and triggered a contagion that has spread to Genesis, the crypto broker, and Gemini, the crypto exchange. FTX has filed for protection from bankruptcy and Mr Bankman-Fried has stepped down as its chief executive.
“It is apparent from this investment that perhaps our belief in the actions, judgment and leadership of Sam Bankman-Fried, formed from our interactions with him and views expressed in our discussions with others, would appear to have been misplaced,” said Temasek.
It added that there have been misperceptions that the investment in FTX is an investment in crypto. “To clarify, we currently have no direct exposure in cryptocurrencies.”

This comes after another FTX investor, Sequoia Capital, said that it would write down the full value of its US$214 million bet on the exchange. SoftBank was later said to be also anticipating a loss of around US$100 million on its investment.
Temasek said that just as it does with all investments, it “conducted an extensive due diligence process on FTX”, which took about eight months from February to October 2021.
During this period, it reviewed the company’s audited financial statement, which showed it to be profitable.


Due diligence efforts were focused on regulatory risks, particularly licensing and compliance, Temasek said, adding that “advice from external legal and cyber-security specialists in key jurisdictions was sought, with legal and regulatory review done for the investments”.
Interviews with people familiar with FTX, such as staff, industry players and other investors, were also conducted.


If allegations, now under investigation, that customer assets were mishandled and misused are true, then it would amount to serious misconduct or fraud at FTX, Temasek said.
It added: “As we only had about 1 per cent stake in FTX, we did not have a board seat. However, we take corporate governance seriously, engage the boards and management of our investee companies regularly and hold them accountable for the activities of their companies.”
FTX’s board comprised Mr Bankman-Fried, an FTX staff member and a lawyer. There was no investor on its board.
Temasek said it continues to recognise the potential of blockchain applications and decentralised technologies.
“While this write-down of our investment in FTX will not have significant impact on our overall performance, we treat any investment losses seriously and there will be learnings for us from this,” it said.

 

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Statement on FTX - Temasek​

17 NOV 2022

Our Blockchain strategy
Innovative technologies, including blockchain technology, are enablers with the potential to transform sectors and create a more connected world. The nascency of the blockchain and digital asset industry presents innumerable opportunities as well as significant risks.
As such, we closely track the risks involved and have taken a calibrated two-pronged approach for exposure in this space – venture building and investing.

• Our venture building efforts have been focused on programmable money, digital assets tokenisation, and decentralised identity and data. Several of these entities are not blockchain-based at this stage but rely on the technology and focus on delivering open data solutions and open networks.
• Our blockchain investment activity focuses on:
  • Financial market service providers to the digital asset space providing protocol agnostic and market neutral exposure; and
  • Technology infrastructure including protocols, wallets, developer tools, cross-chain messaging, metaverse and gaming infrastructure

Background on our investment in FTX
We believe that exchanges form a key part of global financial systems.
The thesis for our investment in FTX was to invest in a leading digital asset exchange providing us with protocol agnostic and market neutral exposure to crypto markets with a fee income model and no trading or balance sheet risk.
We invested US$210 million for a minority stake of ~1% in FTX International, and invested US$65 million for a minority stake of ~1.5% in FTX US, across two funding rounds from October 2021 to January 2022.1 The cost of our investment in FTX was 0.09% of our net portfolio value of S$403 billion as of 31 March 2022.
There have been misperceptions that our investment in FTX is an investment into cryptocurrencies. To clarify, we currently have no direct exposure in cryptocurrencies.

Our risk-return framework and due diligence processes
Our investment discipline, centred around intrinsic value and our risk-return framework, guides our due diligence for new investments and ongoing engagement with our investee companies. 
As an investor-owner seeking sustainable returns over the long term, we believe that we have to invest in new sectors and emerging, nascent business models to understand the applications and impact they may have on the business and financial models of our existing portfolio, or be drivers for future value in an ever-changing world. This is why we invest in early stage companies and accept the binary risks associated with such investments. Our early stage investments constitute ~6% of our portfolio, and as a group have generated good returns for us, with IRRs in the mid- teens. However, we do recognise the inherent risks of investing in early stage companies and take a very measured approach to such investments by applying an illiquidity risk premium on the cost of capital. In addition, we also add on a venture risk premium for the early stage they are in. Our blockchain direct investments are not a significant part of our early stage investments.
Similar to all investments, we conducted an extensive due diligence process on FTX, which took approximately 8 months from February to October 2021. During this time, we reviewed FTX’s audited financial statement, which showed it to be profitable. In addition, our due diligence efforts focused on the associated regulatory risk with crypto financial market service providers, particularly licensing and regulatory compliance (i.e. financial regulations, licensing, anti-money laundering (AML)/ Know Your Customer (KYC), sanctions) and cybersecurity. Advice from external legal and cybersecurity specialists in key jurisdictions was sought, with legal and regulatory review done for the investments.
Separately, we also gathered qualitative feedback on the company and management team based on interviews with people familiar with the company, including employees, industry participants, and other investors.
Post investment, we continued to engage management on business strategy and monitor performance.
We recognise that while our due diligence processes may mitigate certain risks, it is not practicable to eliminate all risks.
Reports have since surfaced that customer assets were mishandled and misused in FTX. If these statements are true, then this amounts to serious misconduct or fraud at FTX. All of this is currently being investigated by the regulators.
It is apparent from this investment that perhaps our belief in the actions, judgment and leadership of Sam Bankman-Fried, formed from our interactions with him and views expressed in our discussions with others, would appear to have been misplaced.
We expect companies that we invest in to comply with their obligations under the laws and regulations of jurisdictions in which they have investments or operations; abide by sound corporate governance; and above all act ethically always. As we only had a ~1% stake in FTX, we did not have a board seat. However, we take corporate governance seriously, engage the boards and management of our investee companies regularly and hold them accountable for the activities of their companies.

Going forward
We are supportive of the efforts of the regulators and the courts, and we encourage the principals involved with FTX to cooperate for an orderly resolution of outstanding matters.
We continue to recognise the potential of blockchain applications and decentralised technologies to transform sectors and create a more connected world. But recent events have demonstrated what we have identified previously – the nascency of the blockchain and crypto industry and the innumerable opportunities as well as significant risks involved.
In view of FTX’s financial position, we have decided to write down our full investment in FTX, irrespective of the outcome of FTX’s bankruptcy protection filing.
There are inherent risks whenever we invest, divest, or hold our assets, and wherever we operate. While this write down of our investment in FTX will not have significant impact on our overall performance, we treat any investment losses seriously and there will be learnings for us from this.
We will continue to remain prudent and exercise caution even as we explore opportunities that are aligned with our structural trends, to deliver sustainable returns over the long term for our overall portfolio.

________________________

1 We participated in two funding rounds – Series B (concurrently across B and B-1 in October 2021) and Series C (January 2022).

 

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GIC-funded Indian firm launches India’s first privately built rocket​

The rocket blasted off at 11.30am from the Indian government-run space centre in Sriharikota in eastern India, on Nov 18, 2022. PHOTO: IN-SPACE

Rohini Mohan
India Correspondent


NOV 18, 2022

BENGALURU - India’s first privately built rocket launched on Friday, heralding a new era for the country’s space sector that opened up to private companies in 2020.
Shown live on national broadcaster Doordarshan with excited commentary and a nail-biting countdown, the rocket blasted off at 11.30am from the Indian government-run space centre in the eastern seaside town of Sriharikota.
The rocket flew to an altitude of 81.5km, before splashing down in the Bay of Bengal.
The Vikram-S – named in tribute to the father of India’s space programme, physicist Vikram Sarabhai – was built by Hyderabad-based start-up Skyroot Aerospace.
The firm’s co-founder Pawan Chandana hailed the successful launch as a “small step for a start-up and a giant leap for the Indian space industry”.
The rocket carried three payloads weighing a total of 80kg, from customers Space Kidz India, N Space Tech India and Armenian education non-profit space lab Bazoomq.
The Vikram series of rockets can launch up to 800kg payloads to an altitude of up to 120km from the earth.

​

“This is a new beginning for Indian private sector in space,” said Mr Pawan Goenka, chairman of Indian National Space Promotion and Authorisation Centre (IN-SPACe), minutes after the launch. IN-SPACe is an autonomous agency under India’s Department of Space.
Minister of State for Science and Technology Jitendra Singh, who was at the launch, congratulated Skyroot’s bespectacled founders, who stood in their start-up chic black T-shirts alongside the formally dressed government officials.
Engineers Naga Bharath Daka and Mr Chandana set up Skyroot in 2018 after quitting their government jobs at the Indian Space Research Organisation (ISRO), India’s national space agency.


The start-up’s leadership is dominated by former staff from ISRO, which had been India’s only space research and development institution since 1969.
After India opened its space sector to private corporations, Skyroot was the first private company in India to tie-up with ISRO to tap the government agency’s expertise and facilities. It now builds rockets to help launch small commercial satellites, as it designs and tests multiple rocket propulsion systems.
Having raised US$68 million (S$93 million), Skyroot is the best-funded aerospace manufacturer in India. Its biggest funder is Singapore’s sovereign fund GIC, which invested US$51 million in September this year for a stake of just under 25 per cent.

(From left) Co-founders of Skyroot Aerospace Naga Bharath Daka and Pawan Chandana with Mr S. Somnath, chairman of Indian Space Research Organisation. PHOTO: SKYROOT AEROSPACE
Other investors in Skyroot include Indian entrepreneurs and private investors including online shopping app Myntra’s founder Mukesh Bansal, Google founding board member Ram Shriram’s Sherpalo Ventures, renewables group Greenko’s founders Mahesh Kolli and Anil Chalamalasetty, and former WhatsApp global business chief Neeraj Arora.
“Skyroot aims to disrupt entry barriers to cost-efficient satellite launch services and… make spaceflights affordable, reliable and regular for all,” Mr Chandana told The Straits Times ahead of the launch.
He added that Vikram-S was able to launch in just two years after India opened up the space sector in June 2020, and despite the pandemic-related delays, because “the necessary policy frameworks and institutions” such as IN-SPACe “are operational and highly responsive”.

India makes up only 2 per cent of the global space market, but its space industry is often lauded for its low-cost space missions. ISRO often achieves ambitious missions at a fraction of the budgets countries like the United States and China spend.
India’s Mars Orbiter Mission, for instance, launched in 2013 on a budget of US$74 million, while America’s Mars spacecraft launched later the same year at US$671 million.
The global space industry is expected to be worth about US$1 trillion by 2040. India hopes to tap into this increasingly lucrative market by fostering cost-efficiency and innovation through private players.
“Public funded space programmes the world-over have set the precedent and enabled the private sector to take the baton forward,” said Mr Chandana, adding that he looks forward to “innovation in business models that private space companies bring in for commercialisation of space technologies”.
Agnikul Cosmos and Bellatrix Aerospace are among the other space start-ups in India looking to launch small satellites into space.

 

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GIC invested in parent firm of troubled crypto broker Genesis, expects high volatility in short term​

When asked about GIC’s investment in Digital Currency Group, the sovereign wealth fund said it does not comment on individual investments, adding that it expects investments to remain highly volatile. PHOTO: GIC

Claire Huang
Business Correspondent

24 Nov 2022

SINGAPORE – Singapore sovereign wealth fund GIC, which is an investor in the group with ties to troubled cryptocurrency broker Genesis Trading, says it expects volatility in investments to stay high in the short term.
Venture capital firm Digital Currency Group (DCG), which owns Genesis and asset manager Grayscale Investments, had raised US$700 million (S$963 million) in November last year from prominent investors such as Softbank, Google’s Capital G, Ribbit Capital and GIC.
In a letter that was leaked online, DCG chief executive Barry Silbert sought to reassure shareholders of the group’s financial stability, as the potential bankruptcy of Genesis is causing jitters.
Mr Silbert, a former investment banker at Houlihan Lokey, wrote in a letter saying that the group is still on track to hit US$800 million in revenue this year.
But he said DCG owes Genesis’ crypto lending arm US$575 million, which is due in May next year. The loan is from Genesis Global Capital, which stopped withdrawals last week due to a liquidity crunch, and the funds were used for DCG’s share buybacks and investments.
Other debts of DCG stated in the letter are a US$350 million credit facility from “a small group of lenders” led by investment firm Eldridge, and a US$1.1 billion promissory note that is due in June 2032 when DCG took over Genesis’ liabilities in relation to the now-bankrupt crypto hedge fund Three Arrows Capital.
When asked about GIC’s investment in DCG, the sovereign wealth fund told The Straits Times that it does not comment on individual investments.

It added: “In the short term, we expect volatility to remain high. Over the long term, we continue to focus on the development of blockchain technology and business models.”
DCG is a crypto player with long tentacles given that it has stakes in more than 160 firms, including Nasdaq-listed exchange Coinbase Global, payments network Ripple and wallets Circle and Ledger. It was valued at US$10 billion last year.
The group said on Twitter a week ago that the suspension of withdrawals at Genesis “has no impact on the business operations of DCG and our other wholly owned subsidiaries”.
Genesis, which is reportedly looking for fresh funding, said on Twitter last week that it was dragged down by the collapse of Three Arrows Capital and crypto exchange FTX.
Troubles at Genesis Global Capital also led to a suspension of withdrawals at exchange Gemini for the latter’s Earn programme – a scheme where investors may choose to lend crypto to certain institutional borrowers to earn interest.
Genesis’ Singapore entity, called Genesis Asia Pacific, in late June received an in-principle approval from the Monetary Authority of Singapore (MAS) to offer digital payment services.
In the meantime, Gemini’s Singapore entity is exempted by MAS from holding a licence under the Payment Services Act, as it is in the midst of applying for a licence in Singapore.

 

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Temasek-backed Vertex invests in cryptocurrency exchange Binance​

By Reuters Staff

October 23, 2018.

SINGAPORE (Reuters) - Vertex Ventures, backed by Singapore state fund Temasek [TEM.UL], has invested in Binance, one of the world’s biggest cryptocurrency exchanges, as it prepares to expand operations into the city-state, the firms said on Tuesday.
In a joint statement, the firms said the investment - the amount of which was undisclosed - will help Binance build and launch by year-end an exchange in Singapore for swapping between hard currencies and digital currencies.
The investment by Vertex Ventures China and Vertex Ventures Southeast Asia & India funds will also help Binance launch other exchanges and services throughout Southeast Asia.
Singapore aims to become a hub for financial technology and innovation in Asia even if some policymakers have warned about the risks of speculative investments in cryptocurrencies.
Hong Kong-based Binance was warned by Japan’s financial watchdog in March for operating without registration.