Temasek cuts compensation for executives responsible for the $275 million FTX investment

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

According to Forbes, Temasek was once FTX’s second-largest outside investor, holding 7 million shares. However, the company had to answer for its investment game after the stock market crashed.

According to a May 29 Bloomberg report, Temasek has now completed its internal assessment of the $275 million investment loss incurred by FTX, which it began shortly after the stock market collapsed in November 2022.

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

The $275 million FTX investment now amortized would have amounted to 0.09% of the more than $293 billion Temasek portfolio value at the time of collapse.

Temasek has maintained its claims that it conducted an extensive due diligence process in FTX before making its investment.

In a separate May 29 Bloomberg statement, Temasek chairman Lim Boon Heng said that “there was fraudulent behavior that was deliberately hidden from investors, including Temasek,” suggesting it had a major impact on the company:

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

Singapore’s Deputy Prime Minister Lawrence Wong previously repeated similar words at a parliament meeting in November 2022, just days after FTX collapsed.

“What happened with FTX has therefore caused not only financial loss for Temasek, but also reputational damage,” Wong said.

Related: FTX founder Sam Bankman-Fried is urging the court to dismiss the charges

Temasek stated that in conducting its due diligence, it reviewed FTX’s financial statements, assessed regulatory risks in financial services firms in the crypto market, and obtained legal advice for nine months from February to October 2021.

It added that the company also connected with people with first-hand knowledge of FTX, including employees, other investors and industry participants.

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

• Temasek Holdings – $275 million
• Sequoia Capital – $213.5 million
• Softbank – $100 million
• Ontario Teachers’ Retirement Plan – $95 million

— CoinGecko (@coingecko) December 3, 2022

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

In a brief statement on May 2, the company took aim at circulating news articles and tweets about Temasek’s investment and dismissed them by stating that “this news is false.”

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