Temasek cuts compensation of executives responsible for its $275M FTX investment

Singaporean investment firm Temasek Holdings has reduced the compensation of executives responsible for the firm’s investment in now-defunct crypto exchange FTX.

Temasek was once the second largest outside investor in FTX with 7 million shares. According to Forbes. However, the firm was forced to answer for its investment game after the exchange collapsed.

as of 29 May reports Per Bloomberg, Temasek has now completed its own internal review of the $275 million investment losses from FTX, which it began shortly after the exchange collapsed in November 2022.

While the findings showed there was “no misconduct” internally, it reported that both its investment team and senior management took “collective accountability” and reduced their compensation.

The $275 million FTX investment that has now been written off was reported to be 0.09% of the Temasek portfolio value of over $293 billion at the time of the collapse.

Temasek stands by its claims that it conducted an extensive due diligence process on FTX prior to making its investment.

in a different May 29 Bloomberg statementTemasek’s chairman, Lim Boon Heng, said there was “fraudulent conduct deliberately concealed from investors including Temasek,” suggesting it had a major impact on the firm:

“We are disappointed with the outcome of our investment and the negative impact on our reputation.”

Singapore’s Deputy Prime Minister Lawrence Wong had earlier reiterated similar words in a November 2022 session of parliament, days after the collapse of FTX.

“What happened with FTX, therefore, not only resulted in financial loss to Temasek, but also reputational damage,” Wong said.

Connected: FTX founder Sam Bankman-Fried asks court to dismiss charges

Temasek said that when it carried out its due diligence, it reviewed FTX’s financial statements, assessed regulatory risks with crypto market financial service providers, and sought legal advice over the nine months from February to October 2021.

It also said the firm also worked with people with direct knowledge of FTX, including employees, other investors and industry participants.

5/ Some of the following #FTXInstitutional investors have said they will write down their FTX investments to $0:

• Temasek Holdings – $275M
• Sequoia Capital – $213.5M
• SoftBank – $100M
• Ontario Teachers’ Pension Plan – $95M

— CoinGecko (@coingecko) December 3, 2022

In recent news, Temasek denied rumors that it had invested $10 million in Array, the developer of an algorithmic currency system based on smart contracts and artificial intelligence.

In a brief statement on 2 May, the firm addressed news articles and tweets circulating about Temasek’s investment, dismissing them as “the news is false”.

magazine: FTX 2.0 is Coming, Multichain FUD and WorldCoin Raise $115 Million: Hodlers Digest, May 21-27