Singapore-based investment firm Temasek has decided to cut the pay for the executives that were responsible for the $275 million investment into FTX and FTX.US, the company said in a press release on 29 May.
According to the announcement, Temasek used an independent team to conduct an internal review of the $210 million investment into FTX International and the $65 million invested in FTX.US. While the investigation concluded that there was “no misconduct” internally, both the investment team and senior management “took collective accountability” and had their compensations cut. Tamasek’s chairman, Lim Boon Heng, said in a statement:
“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. Nevertheless, we are disappointed with the outcome of our investment, and the negative impact on our reputation.”
Temasek was reportedly the second largest outside investor in FTX, owning around 1% stake in FTX and a 1.5% stake in FTX.US at the time of their collapse. Only days after the exchanges went bankrupt, Temasek said it had written off the entirety of its $275 million investment, noting that it represented only 0.09% of the firm’s net protfolio value of around $293 billion.
The company also claimed that it had conducted an eight months long due diligence into FTX prior to its investment, and had reviewed its audited financial statements, assessed regulatory risks, cyber security threats, and sought legal advice.