Temasek Holdings has reduced the compensation for the team responsible for recommending its investment in the now-bankrupt FTX cryptocurrency exchange, as well as its senior management team.
This is according to an announcement made by Singapore state investor, Temasek Holdings, on Monday.
The decision follows an internal review initiated by Temasek approximately six months ago, which led to a $275 million writedown linked to the FTX investment.
Temasek Chairman Lim Boon Heng affirmed that no misconduct was discovered in the investment team’s decision-making process. Both the investment team and senior management took collective accountability, resulting in compensation reductions.
Temasek Holdings’ Investment in FTX and Crypto Exposure
Temasek did not disclose the specific amount of the compensation cut. It previously disclosed that its investment in FTX accounted for 0.09% of its net portfolio value of S$403 billion ($304 billion) as of March 31, 2022.
The state investor clarified that it currently has no direct exposure to cryptocurrencies. It conducted thorough due diligence on FTX in the past and found audited financial statements indicating profitability.
However, following FTX’s filing for bankruptcy protection in the United States last year, other backers such as SoftBank Group Corp’s Vision Fund and Sequoia Capital had written down their investments to zero.
Seeking Sustainable Returns and Staying Informed in an Evolving World
Chairman Lim acknowledged the fraudulent conduct alleged by prosecutors and admitted by key executives at FTX and its affiliates. Further, he expressed disappointment in the investment’s outcome and its impact on Temasek’s reputation.
Despite the setback, Temasek aims for sustainable long-term returns by investing in early-stage companies and staying informed about new sectors and emerging technologies that impact existing businesses and financial models.