Singaporean state investor Temasek Holdings has announced a reduction in compensation for the team that recommended investments in the now-bankrupt cryptocurrency exchange FTX.
This decision comes six months after Temasek initiated an internal review of its investments in FTX, resulting in a write-down of $275 million.
“While the investment team did not engage in any wrongdoing in providing their investment recommendations, both the investment team and senior management, who bear full responsibility for investment decisions made, have collectively taken responsibility, and their compensation has been reduced,” said Temasek Chairman Lim Boon Heng.
Temasek stated that the value of its investments in FTX amounted to 0.09% of the net portfolio value of SGD 403 billion ($304 billion USD) as of March 31, 2022, and currently has no direct impact on cryptocurrencies.
Temasek also mentioned that it conducted a “comprehensive review” of FTX last year, and its audited financial statements “showed it to be profitable.”
Other FTX backers, such as SoftBank Group Corp’s Vision Fund and Sequoia Capital, have also reduced their investments to zero after FTX, founded by Sam Bankman-Fried, filed for bankruptcy in the US last year.
“In the case of FTX, as alleged by prosecutors and acknowledged by key executives of FTX and its affiliates, fraudulent conduct occurred, intentionally concealed from investors, including Temasek,” Lim said on Monday.
“Nevertheless, we are disappointed by the outcomes of our investments and the negative impact on our reputation,” he added.
According to Lim, Temasek aims to achieve stable long-term returns by investing in early-stage development companies
