| Singaporean government-owned investment firm Temasek Holdings has decided to cut salaries for its executives who recommended investing in the crypto exchange FTX that went bankrupt in November last year. Before the collapse, Temasek was the second-largest outside investor of FTX, with its 1% stake and 7 million shares in the company. - The
firm's $275M investment currently accounts for just 0.09% of Temasek's
portfolio, which was valued at over $293B at the time of bankruptcy.
- The
firm had launched an internal review shortly after FTX filed for
bankruptcy to gain insight into the investment decision. The internal
review concluded that there was no misconduct regarding the investment
internally, though the investment team and senior management were
collectively responsible for the wrong decision.
- The Singaporean firm reiterated its claims that it conducted extensive due diligence before investing in FTX.
- Temasek's
chairman, Lim Boon Heng, said the fraudulent activity in FTX was
deliberately hidden from investors, and the exchange's collapse caused
both financial loss and reputational damage for Temasek.
- FTX, previously the third-largest crypto exchange, filed for Chapter 11 bankruptcy in Nov. 2022, with all the 130 entities under the roof of FTX Group.
- The downfall followed the claims that the former CEO Sam Bankman-Fried (SBF) used customer funds in FTX to compensate for losses at the sister company Alameda Research.
- SBF currently faces trial with 13 charges, including bank fraud, money laundering, and bribery, to which he pleaded not guilty.
|
