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Singapore investment firm Temasek Holdings has reduced compensation for the execs responsible for the firm\u2019s investment into the now-defunct crypto exchange FTX.\u00a0<\/p>\n
Temasek was once the second-largest outside investor in FTX, owning 7 million shares, according to Forbes. The firm, however, was forced to answer for its investment play after the exchange collapsed.<\/p>\n
According to a May 29 statement from Temasek, it has now concluded its internal review of the $275 million investment loss incurred from FTX, which it initiated shortly after the exchange collapsed in November 2022.<\/p>\n While the findings revealed that there was \u201cno misconduct\u201d internally, it was reported that both its investment team and senior management took \u201ccollective accountability,\u201d and had their compensation reduced.<\/p>\n It was noted that while \u201cthere are inherent risks\u201d with any investment, it is vital that Temasek continue investing in new innovation:<\/p>\n \u201cWe believe that we have to invest in new sectors and emerging technologies to understand how these areas may impact the business and financial models of our existing portfolio and whether they would be drivers of future value in an ever-changing world. \u201c<\/p><\/blockquote>\n The $275 million FTX investment that is now written off was said to be just 0.09% of Temasek\u2019s portfolio value of more than $293 billion at the time of the collapse.<\/p>\n Temasek has stood by its claims that it conducted an extensive due diligence process into FTX before making its investment.<\/p>\n Temasek\u2019s chairman, Lim Boon Heng, told Bloomberg in a May 29 statement\u00a0that \u201cthere was fraudulent conduct intentionally hidden from investors, including Temasek,\u201d suggesting that it has had a major impact on the firm:<\/p>\n \u201cWe are disappointed with the outcome of our investment, and the negative impact on our reputation.\u201d<\/p><\/blockquote>\n Singapore Deputy Prime Minister Lawrence Wong previously reiterated similar words at a parliament meeting in November 2022, just days after FTX collapsed.<\/p>\n \u201cWhat happened with FTX, therefore, has caused not only financial loss to Temasek but also reputational damage\u201d Wong said.<\/p>\n Related: <\/em><\/strong>FTX founder Sam Bankman-Fried urges court to dismiss charges<\/em><\/strong><\/p>\n Temasek stated that when it conducted its due diligence, it reviewed FTX\u2019s financial statements, assessed regulatory risks with crypto market financial service providers, and sought legal advice over the nine months from February to October 2021.<\/p>\n It was added that the firm also engaged with people with firsthand knowledge of FTX, including employees, other investors, and industry participants.<\/p>\n\n