Temasek reduces compensation for staff responsible for botched FTX investment

Singapore-based investment firm, Temasek Holdings, has cut down the compensation of its utives responsible for the failed investment in the now-bankrupt crypto exchange, FTX.

Temasek disappointed in failed FTX investment

Lim Boon Heng, the chairman of Temasek Holdings,saidthe firm would reduce compensation for the investment team and senior management responsible for the company’s investment in FTX following an internal review.

This comes six months after they wrote off $275 million in November 2022.

“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.”

Statement from Temasek Chairman, Lim Boon Heng

Temasek invested $210 million for a 1% stake in FTX International and $65 million for approximately 1.5% ownership in FTX.US between October 2021 and January 2022.

Unfortunately, the investment did not turn out well. FTX went bankrupt in November 2022

Meanwhile, the total money injected in FTX was 0.09% of Temasek’s S$403 billion ($298 billion), according to the company at the time.

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Shaquille O’Neal officially served in FTX class-action lawsuit at NBA game In a recent statement, Temasek disclosed that they had conducted an extensive investigation into FTX over eight months.

They scrutinized FTX’s audited financial statements throughout this time and confirmed the exchange’s profitability.

However, Temasek’s spokesperson, Boon Heng, alleged that FTX may have concealed fraudulent activities from their investors, including Temasek.

“With FTX, as alleged by prosecutors and as admitted by key utives at FTX and its affiliates, there was fraudulent conduct intentionally hidden from investors, including Temasek. Nevertheless, we are disappointed with the outcome of our investment, and the negative impact on our reputation.”

Statement from Temasek Chairman Lim Boon Heng

Possible relaunch of FTX in the works?

Like Temasek, venture capital firm Sequoia alsomarked downits FTX investment to zero, stating that the loss did not affect the company’s fund

The collapse of FTX, a major player in the cryptocurrency exchange industry, caused significant impact both inside and outside the industry. This ed global regulators to implement stricter regulations.

Meanwhile, a recent documentrevealedpossible plans for an FTX relaunch in a new project called FTX 2.0. According to the document, the new FTX CEO, John Ray III, assessed a list of potential buyers interested in the new venture.

One such bidder was Tribe Capital, with previous reports stating that the venture capital firm couldleada funding round to revive the crypto exchange.

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Former FTX CEO Sam Bankman-Fried wants most criminal charges dismissed