Due to failed FTX investment, Temasek has to slash its pay for the staff responsible for the debacle.
Singapore Temasek Holdings
It’s an investment firm based in Singapore with a portfolio valued at S$403 billion as of March 2022. Incorporated on 25 June 1974, Temasek Holdings is a state-owned company operating as an active shareholder as well as an investor. Four core themes conduct its investment activities. These are growing middle-income populations, transforming economies, emerging champions, and deepening comparative advantages.
Failed FTX Investment Slashes Staff Pay
The misfortune of the FTX cryptocurrency investment resulted in cutting the pay of those staff responsible for the said fiasco. The fund depreciated all of the invested $275 million in November 2022. Because of this, prosecutors charged former FTX Chief Executive Sam Bankman-Fried with devising a “huge” stratagem which may compromise investors losing billions of dollars.
“The investment team and senior management, who are ultimately responsible for the investment decisions made, took collective accountability and had their compensation reduced,” said Temasek.
The sovereign wealth fund expressed its dismay with the development of its investment. It also includes the adverse effect on its reputation. It staked $210 million and another $65 million in FTX cryptocurrency exchange in two funding rounds between October 2021 and January 2022.
Sovereign wealth funds function as savings accounts for a nation. These are usually invested in shares, properties, currencies, or other assets.
In December, authorities arrested Bankman-Fried in the Bahamas and charged him with eight criminal charges. This includes campaign finance violations, wire fraud, and money laundering. His co-founder Gary Wang and former Alameda head Caroline Ellison were also charged for their criminal roles in the company’s downfall.
Internal Investigation of Temasek’s Investment
The amount involved in the embezzlement is massive, and an internal review of the investment is crucial. Details will be directly delivered to the board. They didn’t disclose the amount of the cut or the number of affected staff.
“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. Nevertheless, we are disappointed with the outcome of our investment, and the negative impact on our reputation,” said Chairman Lim Boon Heng.
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