Singapore’s Temasek has launched a review of its $275mn investment in FTX as the state-owned investment fund is scrutinised over the due diligence it performed before backing Sam Bankman-Fried’s crypto exchange.

Lawrence Wong, Singapore’s deputy prime minister, told parliament on Wednesday that Temasek’s losses were “disappointing” and had caused reputational damage for the city-state.

Temasek earlier this month wrote off its investment in FTX, which constituted 0.09 per cent of its S$403bn (US$295bn) portfolio but provided the crypto group with a seal of approval from a major fund manager. In response to queries by the Financial Times, the fund had defended its “eight-month due diligence” process but earlier this month admitted its trust in former chief executive Bankman-Fried appeared “misplaced”.