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

Temasek Holdings, a Singapore investment corporation, has lowered remuneration for executives responsible for the business’s participation in the now-defunct cryptocurrency exchange FTX. 

According to Forbes, Temasek was formerly the second-largest outside investor in FTX, owning 7 million shares. However, once the exchange crashed, the business was compelled to account for its investment play.

According to a May 29 Bloomberg story, Temasek has completed its internal examination of the $275 million investment loss experienced by FTX, which it began immediately after the exchange’s demise in November 2022.

While the results indicated “no misconduct” inside the company, it was stated that both its investment team and top management accepted “collective accountability” and had their pay slashed.

At the time of the collapse, the $275 million FTX investment was believed to represent 0.09% of Temasek’s portfolio worth more than $293 billion. Temasek has maintained that it undertook significant due diligence on FTX before making its investment.

Temasek’s chairman, Lim Boon Heng, claimed in a separate Bloomberg statement on May 29 that “there was fraudulent conduct intentionally hidden from investors, including Temasek,” implying that it has had a significant effect on the firm:

“We are dissatisfied with the outcome of our investment and the resulting negative impact on our reputation.” Deputy Prime Minister Lawrence Wong of Singapore earlier stated similar sentiments during a parliament meeting in November 2022, only days after FTX failed.

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

Temasek indicated that it studied FTX’s financial accounts, analysed regulatory risks with crypto market financial service providers, and sought legal guidance during a nine-month period from February to October 2021.

It was also said that the company spoke with persons who had direct knowledge of FTX, such as workers, other investors, and industry players. Temasek recently rejected claims that it had invested $10 million in Array, the creator of the algorithmic money system based on smart contracts and artificial intelligence.

On May 2, the business issued a brief statement in which it dismissed the circulating news stories and tweets about Temasek’s investment, noting that “this news is incorrect.”

 

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