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Temasek docks pay over FTX investment

Temasek docks pay over FTX investment

Singapore state-owned investment fund Temasek Holdings has cut the pay of employees responsible for its $275 million investment in failed cryptocurrency exchange FTX.

In November, Temasek wrote off the investment, made over two funding rounds between October 2021 and January 2022.

In a statement, the fund says that there are inherent risks in all investments and that, in the case of FTX, there is alleged fraudulent conduct intentionally hidden from investors.

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

Concludes the statement: "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."

FTX founder Sam Bankman-Fried is facing criminal charges accusing him of conspiring to commit bank fraud and to make unlawful political contributions.

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Comments: (2)

A Finextra member
A Finextra member 30 May, 2023, 04:13Be the first to give this comment the thumbs up 0 likes

How much was their salary reduced by? How did they assess that their decision making was not incompetent to the point of negligence? Why not firing them? What degree of damange an investment team has to cause for Temasek to fire them? Isn't 275 millions enough? If our Minister Mentor was still alive, perhaps they would not get away with it so lightly.

Jamie French
Jamie French - iTechArt - London 30 May, 2023, 09:46Be the first to give this comment the thumbs up 0 likes

Don't know much about this but its nice to see some accountablility