Temasek to take accountability of investment in collapsed crypto exchange
It does not plan to invest in cryptocurrencies and it will be cautious when considering new investments in the blockchain space, Temasek said
Singapore’s Temasek Holdings, for its ill fated $275 million investment in collapsed crypto exchange FTX, has pledged to take “collective accountability”.
“Fraudulent conduct intentionally hidden from investors, including Temasek,” said Temasek, one of the country’s sovereign wealth funds, in a statement released on Monday morning.
“Although there was no misconduct by the investment team in reaching their investment recommendation, the investment team and senior management, who are ultimately responsible for investment decisions made, took collective accountability and had their compensation reduced,” Temasek Chairman Lim Boon Heng said in a statement posted to its website.
The fund said it had written off the entirety of its investment days after FTX collapsed in November. Temasek, in November said that the $210 million investment, which accounted for 1% of FTX International, and $65 million for 1.5% of FTX.US, represented 0.09% of the firm’s net portfolio value of $293.5 billion (SGD 403 billion) from last year.
At that time, reviewing its audited financial statements, analyzing regulatory risk, and cyber security threats, Temasek claimed that it did eight months of due diligence on FTX. It intends to refine its investment appraisal procedure, especially for rapidly growing firms, Temasek said after the collapse of FTX.
It does not plan to invest in cryptocurrencies and it will be cautious when considering new investments in the blockchain space, the fund reiterated. In a crypto exchange, FTX was the only investment Temasek had.
During the heydays of FTX it was accessible to users based in Singapore, while Binance, its chief rival, was blocked.
The Monetary Authority of Singapore (MAS) added Binance to the Investor Alert List in September 2021, yet made no such move on Binance.
This was because Binance directly solicited Singaporean customers, and offered trades in Singapore dollar, which was not the case for FTX, MAS later said.
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