Temasek slashes compensation for execs responsible for its $275M FTX investment
Singapore investment firm Temasek Holdings has reduced compensation for the execs responsible for the firm’s investment into the now-defunct crypto exchange FTX.
Temasek was once the second-largest outside investor of FTX, with 7 million shares, according to Forbes. The firm however was forced to answer for its investment play 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 from FTX, which it initiated shortly after the exchange collapsed in November 2022.
While the findings revealed that there was “no misconduct” internally, it was reported that both its investment team and senior management took “collective accountability,” and had their compensation reduced.
The $275 million FTX investment which is now written off, was said to be 0.09% of Temasek portfolio value of more than $293 billion, at the time of collapse.
Temasek has stood by its claims that it conducted an extensive due diligence process into FTX before making its investment.
In a seperate May 29 Bloomberg statement, Temasek’s chairman, Lim Boon Heng, said that “there was fraudulent conduct intentionally hidden from investors, including Temasek,” suggesting that it has had a major impact on the firm:
Singapore’s Deputy Prime Minister Lawrence Wong previously reiterated similar words at a parliament meeting in November 2022, just days after FTX collapsed.
“What happened with FTX, therefore, has caused not only financial loss to Temasek but also reputational damage” Wong said.
Related: FTX founder Sam Bankman-Fried urges court to dismiss charges
Temasek stated that when it conducted its due diligence, it reviewed FTX’s financial statements,
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