Temasek Adjusts Employee Compensation Following Unsuccessful FTX Investment

cryptonews.com:

Singaporean investment firm Temasek Holdings has lowered the compensation of senior management and the investment team responsible for investing in FTX. 

An internal review found no misconduct by the investment team but Temasek's management still took "collective accountability" and reduced their compensation, according to a Monday statement from the company. 

"With FTX, as alleged by prosecutors and as admitted by key executives at FTX and its affiliates, there was fraudulent conduct intentionally hidden from investors, including Temasek," Chairman Lim Boon Heng commented, adding:

"We are disappointed with the outcome of our investment, and the negative impact on our reputation."

The move comes after Temasek wrote down its $275 million investment in FTX last year following the crypto company's meltdown.

Temasek’s investment in FTX occurred after the company announced its plans to go public via a special purpose acquisition company (SPAC) deal in the United States. 

However, the deal was put on hold after questions were raised about FTX’s business model. Temasek had said previously that it conducted extensive due diligence on the crypto exchange before investing.

While Temasek currently has no direct exposure to cryptocurrencies, the firm has invested in blockchain firms like Chain, R3, and Digital Currency Group. 

The company said its cost of investment in FTX was 0.09% of its net portfolio value of S$403 billion ($304 billion) as of March 31, 2022, and that it currently had no direct exposure to cryptocurrencies.

Temasek is a state-owned investor and one of the largest investors in Asia, with a portfolio worth over $300 billion. The company has stakes in well-known firms such as Alibaba, Tencent, and Zoom, among others.

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