Temasek cuts staff compensation after failed FTX investment
By Shiyin Chen
(Bloomberg) — Singapore investment firm Temasek Holdings Pte said it reduced compensation for senior management and the investment team responsible for investing in FTX.
The state-owned investor said that while it found no misconduct by its investment team, it and senior management took “collective accountability” and had their compensation lowered.
“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 said in a statement Monday following an internal review. “We are disappointed with the outcome of our investment, and the negative impact on our reputation.”
Temasek wrote down its $275 million investment in FTX last year after the crypto company’s meltdown. At the time, the investor said it conducted an “extensive due diligence process” on the crypto exchange and reviewed the company’s audited financial statement, which showed it to be profitable.
In the wake of FTX’s blowup, co-founder Sam Bankman-Fried stands accused of orchestrating a multibillion-dollar fraud through his once bustling cryptocurrency exchange. The former CEO has pleaded not guilty to all charges and is scheduled to face trial in October.
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