Temasek slashes compensation for all the executives, who were responsible for its $275M investment in bankrupt crypto firm FTX.
Temasek is a Singapore-based investment firm and it was the second biggest outside Investor in the FTX exchange. Temasek was holding nearly 7 million FTX shares, worth nearly $275 million. On 19 Nov 2022, FTX filed for bankruptcy & with its bankruptcy Temasek also lost its investment.
On 29 May 2023, Temasek stated that it conducted an internal review to figure out any kind of possible misconduct over its investment in the FTX exchange but found everything was fine. In short, the investment by the Temasek officials was a fair decision & was not forced/manipulated by anyone.
The Temasek team didn’t expect to get a return from the collapsed platform FTX but still, it is standing strong to invest in emerging technology & new platforms.
The investment firm stated:
“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.”
It is worth it to note that $275 million was 0.09% of the total portfolio of this Singapore-based investment firm. The investment team and senior management took “collective accountability,” and had their compensation reduced.
However, investigation findings noted that the investment was not manipulated or part of any misconduct/fraud but still Temasek’s chairman, Lim Boon Heng, said that “there was fraudulent conduct intentionally hidden from investors”.
Few people in the crypto community noted that Temasek is not in full loss and there are huge chances that it will get its all investment back with profit in the long term because the current FTX bankruptcy leadership is already recovering the funds fastly & also they are planning to revive the platform again.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.