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

Singapore funding agency Temasek Holdings has lowered compensation for the execs accountable for the agency’s funding into the now-defunct crypto change FTX. 

Temasek was as soon as the second-largest exterior investor in FTX, proudly owning 7 million shares, according to Forbes. The agency, nevertheless, was pressured to reply for its funding play after the change collapsed.

In accordance with a Could 29 statement from Temasek, it has now concluded its inner evaluate of the $275 million funding loss incurred from FTX, which it initiated shortly after the change collapsed in November 2022.

Whereas the findings revealed that there was “no misconduct” internally, it was reported that each its funding group and senior administration took “collective accountability,” and had their compensation lowered.

It was famous that whereas “there are inherent dangers” with any funding, it’s vital that Temasek proceed investing in new innovation:

“We consider that now we have to spend money on new sectors and rising applied sciences to know how these areas might affect the enterprise and monetary fashions of our current portfolio and whether or not they could be drivers of future worth in an ever-changing world. “

The $275 million FTX funding that’s now written off was mentioned to be simply 0.09% of Temasek’s portfolio worth of greater than $293 billion on the time of the collapse.

Temasek has stood by its claims that it performed an intensive due diligence process into FTX earlier than making its funding.

Temasek’s chairman, Lim Boon Heng, advised Bloomberg in a Could 29 statement that “there was fraudulent conduct deliberately hidden from buyers, together with Temasek,” suggesting that it has had a serious affect on the agency:

“We’re disenchanted with the end result of our funding, and the destructive affect on our repute.”

Singapore Deputy Prime Minister Lawrence Wong beforehand reiterated similar words at a parliament assembly in November 2022, simply days after FTX collapsed.

“What occurred with FTX, due to this fact, has brought on not solely monetary loss to Temasek but additionally reputational injury” Wong mentioned.

Associated: FTX founder Sam Bankman-Fried urges court to dismiss charges

Temasek acknowledged that when it performed its due diligence, it reviewed FTX’s monetary statements, assessed regulatory dangers with crypto market monetary service suppliers, and sought authorized recommendation over the 9 months from February to October 2021.

It was added that the agency additionally engaged with individuals with firsthand data of FTX, together with staff, different buyers, and business individuals.

5/ A few of the following #FTX‘s institutional buyers have mentioned they are going to be writing down their FTX investments to $0:

• Temasek Holdings – $275M
• Sequoia Capital – $213.5M
• Softbank – $100M
• Ontario Lecturers’ Pension Plan – $95M

— CoinGecko (@coingecko) December 3, 2022

In newer information, Temasek denied rumors that it had invested $10 million into Array, the developer of the algorithmic foreign money system primarily based on sensible contracts and synthetic intelligence.

In a brief assertion on Could 2, the agency addressed the circulating information articles and tweets concerning Temasek’s funding, dismissing them by stating that “this information is inaccurate.”

Journal: FTX 2.0 coming up, Multichain FUD and Worldcoin raises $115M: Hodler’s Digest, May 21-27