A class action lawsuit involving Singapore state investor, Temasek and the collapsed American cryptocurrency exchange has gained momentum. Recently, additional plaintiffs have been added to the lawsuit, intensifying the scrutiny of the alleged violations.

According to a report by The Straits Times, the amendment to the class action lawsuit was filed by five plaintiffs in the US District Court for the Northern District of California. The plaintiffs, Leandro Cabo, Vitor Vozza, Kyle Rupprecht, Warren Winter, and Sunil Kavuri, are accusing Temasek, Sequoia Capital, SoftBank, and Sino Global Capital of abetting FTX's multi-billion dollar fraud.

More Allegations

In particular, the plaintiffs are accusing the defendants of perpetrating, conspiring, aiding, and abetting fraud allegedly conducted by the former executives of the now-bankrupt cryptocurrency exchange, FTX. The lawsuit has raised questions about the level of due diligence carried out by the four companies.

In February, Temasek, alongside 17 other financial institutions, venture capitalists, and accounting firms, was sued for allegedly conspiring with FTX to defraud investors. The state investor had invested a substantial amount in FTX before the exchange collapsed and eventually filed for bankruptcy last November.

Thus, the Singaporean investments giant was forced to write off USD $275 million investment in FTX. Additionally, in May, Temasek was forced to cut the pay of its investment team and senior management, despite finding no misconduct, to mitigate the impact of the losses.

Temasek's Unfolding Saga

In a report by Finance Magnates, Temasek said in its defense that it had examined FTX's operations and financial records prior to investing in the company. It stated that at an initial glance, FTX appeared to be financially viable. However, an influx of customer withdrawals made it difficult to maintain liquidity in the exchange and caused a significant decline in the value of its assets.

Singapore's Deputy Prime Minister, Lawrence Wong said: "It is disappointing when there is a loss, as in the case of Tamasek's investment in FTX. Even more so because the loss arose from what turned out to be a very badly managed company and from possible fraud and mishandling of customers funds."

Meanwhile, sources from Bloomberg reveal that Ryan Salame, the former Co-Chief Executive at FTX Digital Markets, might take a guilty plea as early as next month. Salame could reportedly face charges related to the violation of campaign laws. As reported by the media publication, Salame was a megadonor to politicians in the US.