Singapore’s state investment firm Temasek has cut the compensation of the team that recommended investing in the now-bankrupt cryptocurrency exchange FTX.
The announcement was made in a statement on Monday, May 29, and comes after Temasek conducted an internal review of its investment in FTX. The review found that there was no misconduct by the investment team, but that they had taken “collective accountability” for the loss.
Temasek invested $275 million in FTX in two rounds of funding in 2021 and 2022. However, the exchange filed for bankruptcy protection in the United States in November 2022, and the value of Temasek’s investment has been written down to zero.
In the statement, Temasek Chairman Lim Boon Heng said that the investment team had “conducted extensive due diligence” on FTX before making the investment. However, he said that the firm had “fallen short” in its assessment of the risks involved.
“We are disappointed with the outcome of our investment, and the negative impact on our reputation,” Lim said. “We have learned from this experience and will continue to strengthen our investment process.”
Despite the loss, Temasek remains committed to investing in early-stage companies and emerging technologies. The firm has a portfolio of over 300 companies, with a focus on sectors such as technology, healthcare, and infrastructure.