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Temasek’s investment loss of $275 million in the implosion of cryptocurrency exchange FTX was “disappointing” and detrimental to Singapore, said Deputy Prime Minister and Finance Minister Lawrence Wong.

Speaking in Parliament on Wednesday, Wong said that the losses Singapore’s sovereign wealth fund endured were “being taken seriously.”

But the casualties don’t mean the governance system is not working, he said. “Rather, it is the nature of investment and risk-taking.”

Temasek announced in mid-November that it would be writing down the value of its investment in FTX to zero, “irrespective of the outcome of FTX’s bankruptcy protection filing.” Temasek also said that they currently have no direct exposure in cryptocurrencies.

“What happened with FTX, therefore, has not only caused financial loss to Temasek but also reputational damage,” said Wong.

FTX has more than 100,000 creditors as well as liabilities in the range of $10 billion to $50 billion, according to a bankruptcy filing.

“What happened with FTX therefore has not only caused financial loss to Temasek, but also reputational damage,” Wong said.

“Temasek recognizes this and has issued a comprehensive statement to explain its due diligence process and the circumstances leading to its investment in FTX,” he said, adding that an internal review is being conducted to study what went wrong with the FTX deal and how to improve the process.

He said the government does not prescribe guidelines on allocating specific assets or asset classes, whether for cryptocurrencies or other assets.