Bryan van der Beek | Bloomberg | Getty Illustrations or photos
Singapore point out investor Temasek Holdings said on Monday it had cut compensation for the group that encouraged its investment in the now-bankrupt FTX cryptocurrency trade, as well as for its senior management crew.
The shift will come all around 6 months after Temasek initiated an internal review of its investment in FTX, which resulted in a writedown of $275 million.
“Whilst there was no misconduct by the investment team in achieving their investment advice, the investment team and senior administration, who are finally accountable for investment decisions created, took collective accountability and experienced their payment lessened,” Temasek Chairman Lim Boon Heng reported in a assertion posted on Temasek’s web page on Monday.
Temasek did not detail the sum of compensation cut.
Temasek had said its price tag of investment in FTX was .09% of its web portfolio price of 403 billion Singaporean bucks ($304 billion) as of March 31, 2022, and that it at present experienced no immediate exposure in cryptocurrencies.
Temasek also reported previous year it had carried out “comprehensive owing diligence” on FTX, with its audited monetary assertion then “showed it to be profitable.”
FTX’s other backers these types of as SoftBank’s Vision Fund and Sequoia Cash experienced also marked down their investment to zero after FTX, started by Sam Bankman Fried, submitted for personal bankruptcy defense in the U.S. past calendar year.
“With FTX, as alleged by prosecutors and as admitted by critical executives at FTX and its affiliate marketers, there was fraudulent perform intentionally hidden from investors, including Temasek,” Lim stated in the statement on Monday. “Even so, we are disappointed with the result of our investment, and the adverse influence on our reputation.”
Temasek seeks to deliver sustainable returns more than the lengthy expression by investing into early-stage businesses, Lim reported.
“Though there are inherent pitfalls whenever we make investments, we consider that we have to spend in new sectors and emerging systems to recognize how these areas may possibly influence the business and fiscal products of our existing portfolio, and no matter whether they would be drivers of long run worth in an ever changing world,” Lim included.
