Temasek slashes compensation for execs responsible for its $275M FTX investment

Singapore-based investment firm Temasek Holdings has cut salaries for executives responsible for investing in the now-defunct cryptocurrency exchange FTX.

Temasek was once FTX’s second largest outside investor, with 7 million shares. according to to Forbes. However, the company was forced to respond to its investment strategy after the exchange’s collapse.

According to reports on May 29, report According to Bloomberg, Temasek has closed an internal investigation into $275 million in investment losses from FTX, which began shortly after FTX collapsed in November 2022.

While the investigation found “no wrongdoing” internally, both the investment team and senior management were reported to have taken “collective responsibility” and had their compensation reduced.

The $275 million FTX investment currently being written off was said to represent 0.09% of Temasek’s portfolio value of more than $293 billion at the time of bankruptcy.

Temasek supports its claims that it undertook an extensive due diligence process on FTX before investing.

Separately from Bloomberg on May 29 statementTemasek chairman Lim Bun Heng said there was fraudulent activity that was deliberately hidden from investors, including Temasek, suggesting that it had a significant impact on the company.

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

Singapore’s Deputy Prime Minister Lawrence Wong previously repeated similar words during parliamentary session in November 2022, just days after the FTX bankruptcy.

“Thus, what happened with FTX not only caused economic loss for Temasek, but also caused reputational damage,” Wong said.

Related: FTX Founder Sam Bankman-Fried Asks Court to Drop Charges

In conducting its due diligence, Temasek said it reviewed FTX’s financial statements over a nine-month period from February to October 2021, assessed the regulatory risks of the cryptocurrency market financial services provider, and sought legal advice. Stated.

The company has also worked with people with first-hand knowledge of FTX, including employees, other investors, and industry insiders, he added.

5/ some of the following #FTXof institutional investors said they would write down their investment in FTX to $0.

• Temasek Holdings – $275 million
• Sequoia Capital – $213.5 million
• Softbank – $100 million
• Ontario Teacher’s Pension Plan – $95 million

— CoinGecko (@coingecko) December 3, 2022

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

In a brief statement on May 2, the company referred to news articles and tweets circulating about Temasek’s investment and denied it, saying “the news is false.”

magazine: FTX 2.0 Approaches, Multichain FUD and Worldcoin Raise $115M: Hodler’s Digest, May 21-27