Temasek Reevaluates Investment Strategy Post-FTX Collapse

Singapore's state investment fund Temasek is shifting its investment strategy following significant losses, including a $275 million write-down on the failed crypto exchange FTX. The fund, owned by Singapore's Ministry of Finance, is reducing its exposure to early-stage startups to mitigate risks and protect its portfolio. This move comes after Temasek faced both financial setbacks and reputational damage due to high-profile investment failures. The decision underscores the growing caution among institutional investors in the volatile cryptocurrency market, particularly after the FTX debacle. Temasek's revised approach highlights a broader trend of de-risking and prioritizing stability over high-risk, high-reward ventures in the digital asset space.

Temasek Shifts Strategy After FTX Debacle, Cuts Early-Stage Startup Funding

Singapore's state investment fund Temasek is scaling back its exposure to early-stage startups following a series of high-profile investment failures, most notably its $275 million write-down on collapsed crypto exchange FTX. The sovereign wealth fund, owned by Singapore's Ministry of Finance, will now prioritize de-risking its portfolio after suffering both financial losses and reputational damage.

The FTX collapse served as a watershed moment for Temasek, which had been among the exchange's most prominent backers alongside SoftBank and BlackRock. The fund's due diligence processes failed to detect the underlying issues at what appeared to be a thriving cryptocurrency platform. This misstep followed other troubled investments including a $300 million loss on Indonesian agritech firm eFishery amid fraud allegations.

Temasek's retreat from venture-stage investing has been dramatic - commitments plummeted from $4.4 billion to just $509 million between 2021 and 2024, with deal count dropping from 82 to 11 annually. The MOVE reflects growing institutional wariness toward unlisted startups, particularly in volatile sectors like cryptocurrency where FTX's implosion demonstrated how quickly apparent success can unravel.

Best Crypto Wallets in 2025 (So Far): Custodial and Non-Custodial Options Compared

The cryptocurrency landscape in 2025 demands heightened vigilance in wallet selection, a lesson hard-learned from the collapses of FTX, Celsius, and BlockFi during the 2021–2022 cycle. Security and self-custody have become non-negotiable priorities for investors.

Leading the pack is the Bitcoin.com Wallet, which outperforms competitors across critical metrics: ironclad security protocols, intuitive user experience, uncompromising privacy features, and multi-chain functionality. Its non-custodial architecture embodies the 'not your keys, not your coins' ethos that now dominates post-crash sentiment.

Market trends show accelerating migration from exchange-based storage to dedicated wallet solutions. The distinction between custodial convenience and non-custodial sovereignty has become the defining choice for crypto holders—a financial self-preservation strategy in an era of regulatory uncertainty.