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Singapore state financier Temasek Holdings stated on Monday it had actually cut settlement for the group that suggested its financial investment in the now-bankrupt FTX cryptocurrency exchange, along with for its senior management group.
The relocation happens 6 months after Temasek started an internal evaluation of its financial investment in FTX, which led to a writedown of $275 million.
“Although there was no misconduct by the investment team in reaching their investment recommendation, the investment team and senior management, who are ultimately responsible for investment decisions made, took collective accountability and had their compensation reduced,” Temasek Chairman Lim Boon Heng stated in a declaration published on Temasek’s site on Monday.
Temasek did not information the quantity of settlement cut.
Temasek had stated its expense of financial investment in FTX was 0.09% of its net portfolio worth of 403 billion Singaporean dollars ($304 billion) since March 31, 2022, which it presently had no direct exposure in cryptocurrencies.
Temasek likewise stated in 2015 it had actually carried out “extensive due diligence” on FTX, with its audited monetary declaration then “showed it to be profitable.”
FTX’s other backers such as SoftBank’s Vision Fund and Sequoia Capital had likewise discounted their financial investment to no after FTX, established by Sam Bankman Fried, declared insolvency security in the U.S. in 2015.
“With FTX, as alleged by prosecutors and as admitted by key executives at FTX and its affiliates, there was fraudulent conduct intentionally hidden from investors, including Temasek,” Lim stated in the declaration onMonday “Nevertheless, we are disappointed with the outcome of our investment, and the negative impact on our reputation.”
Temasek looks for to provide sustainable returns over the long term by investing into early-stage business, Lim stated.
“While there are inherent risks whenever we invest, we believe that we have to invest in new sectors and emerging technologies to understand how these areas may impact the business and financial models of our existing portfolio, and whether they would be drivers of future value in an ever changing world,” Lim included.
