Singaporean investment firm Temasek Holdings has cut compensation for executives responsible for the company’s investment in now-defunct cryptocurrency exchange FTX.
Temasek was once the second largest outside investor in FTX, with 7 million shares, according Forbes. However, the company was forced to respond to its investment game after the stock market crash.
According to May 29 a report From Bloomberg, Temasek has now finished its internal review of the $275 million investment loss incurred by FTX, which began shortly after the stock market crash in November 2022.
While the results revealed “no misconduct” internally, it was reported that both the investment team and senior management took “collective accountability” and reduced their compensation.
The now written off $275 million FTX investment was said to have been 0.09% of the value of Temasek’s portfolio of more than $293 billion at the time of the crash.
Temasek has stood by its claims that it conducted an extensive due diligence process in FTX before making its investment.
In a separate May 29 Bloomberg statement“There was fraudulent behavior that was deliberately concealed from investors, including Temasek,” said Lim Boon Hing, Temasek’s chairman, suggesting that it had a significant impact on the company:
“We are disappointed with the result of our investment and the negative impact on our reputation.”
Singapore’s Deputy Prime Minister, Lawrence Wong, repeated similar words at a Parliament meeting in November 2022, just days after the collapse of FTX.
“What happened with FTX not only caused Temasek financial loss but also reputational damage,” said Wong.
Related: FTX founder Sam Bankman-Fred urges court to drop charges
Temasek stated that when it conducted its due diligence, it reviewed FTX’s financial statements, assessed regulatory risks with financial service providers for the crypto market, and sought legal advice over a nine-month period from February to October 2021.
It was added that the company also dealt with people with direct knowledge of FTX, including employees, other investors, and industry participants.
5/ Some of the following #FTXFTX institutional investors said they would write their FTX investments down to $0:
• Temasek Holdings – $275 million
• Sequoia Capital – $213.5 million
• Softbank – $100 million
• Ontario Teachers’ Retirement Plan – $95 million– CoinGecko (@coingecko) December 3, 2022
In the latest news, Temasek has denied rumors that it has invested $10 million in Array, a developer of an algorithmic currency system based on smart contracts and artificial intelligence.
In a short statement on May 2, the company addressed news articles and tweets circulating regarding Temasek’s investment, dismissing them by saying, “This news is not true.”
magazine: FTX 2.0 Rollout, Multichain FUD and Worldcoin Raise $115M: Hodler’s Digest, May 21-27