Temasek, Singapore’s state-owned investment firm, said on Monday that it has cut the pay of senior management and the investment team involved in the decision to invest in the now-bankrupt FTX cryptocurrency exchange.
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- In a statement, Temasek said that while there was no misconduct from the investment team during their decision-making process, the team and senior management, who ultimately bear responsibility for investment decisions, have accepted collective accountability through reduced compensation.
- Temasek wrote off US$275 million it had invested in FTX before the exchange collapsed last November. At that time, Temasek said it had conducted an extensive due diligence process.
- “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 said in the statement.
- FTX, once the second-largest crypto exchange with a valuation exceeding US$30 billion, was often seen as a rescuer for struggling crypto businesses. The Bahamas-based exchange declared bankruptcy on Nov. 11, sending shockwaves throughout the crypto industry and affecting several other crypto businesses, including Genesis, BlockFi and AAX exchange.
- The Monetary Authority of Singapore (MAS) had said that it couldn’t shield local users from the fallout of FTX’s collapse, as the crypto exchange operated offshore and was not under the licensing jurisdiction of the MAS.
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