Singapore investment firm Temasek Holdings has reduced compensation for executives responsible for the firm's investment in the now-defunct cryptocurrency exchange FTX.
Temasek was once the second largest outside investor in FTX, with 7 million shares, according to Forbes. However, the company was forced to answer for its investment game after the exchange collapsed.
According to a May 29 report From Bloomberg, Temasek has now concluded its internal review of the $275 million investment loss incurred by FTX, which began shortly after the exchange crashed in November 2022.
While the findings revealed "no misconduct" internally, both his investment team and senior management were reported to have taken "collective responsibility" and reduced his compensation.
The $275 million investment in FTX that is now written off was said to be 0.09% of the value of Temasek's portfolio of more than $293 billion, at the time of the collapse.
Temasek has maintained its claims that it conducted extensive due diligence process in FTX before making your investment.
In a separate Bloomberg May 29 statementTemasek Chairman Lim Boon Heng said that "fraud conduct was intentionally hidden from investors, including Temasek," suggesting it has had a major impact on the company:
"We are disappointed with the outcome of our investment and the negative impact on our reputation."
Singapore's Deputy Prime Minister Lawrence Wong, formerly reiterated similar words at a meeting of parliament in November 2022, just days after FTX collapsed.
โWhat happened with FTX, therefore, not only caused financial loss to Temasek, but also reputational damage,โ Wong said.
Related: FTX founder Sam Bankman-Fried urges court to dismiss charges
Temasek stated that when he conducted his due diligence, he reviewed FTX's financial statements, assessed regulatory risks with crypto market financial service providers, and sought legal advice for nine months, from February to October 2021.
It added that the firm also engaged with people with first-hand knowledge of FTX, including employees, other investors, and industry participants.
5/ Some of the following #FTXInstitutional investors have said that they will lower their investments in FTX to $0:
โข Temasek Holdings - $275M
โข Sequoia Capital - $213.5 million
โข Soft bank: 100 million dollars
โข Ontario Teacher Pension Plan - $95 millionโ CoinGecko (@coingecko) December 3, 2022
In more recent news, Temasek denied rumors that he had invested $10 million in Array, the developer of the algorithmic currency system based on smart contracts and artificial intelligence.
In a brief statement on May 2, the firm referred to news articles and tweets circulating about Temasek's investment and dismissed them as "this news is incorrect."
Magazine: Coming Soon FTX 2.0, Multichain FUD, and Worldcoin Raise $115 Million: Hodler's Digest, May 21-27
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