Singapore's Temasek Cuts Pay Of Staffers Responsible For FTX Investments

Singapore state investor Temasek Holdings said it had cut compensation for the team that recommended its investment in the now-bankrupt FTX cryptocurrency exchange, as well as for its senior management team.

Photo Insert: Temasek also said last year it had conducted "extensive due diligence" on FTX, with its audited financial statement then "showed it to be profitable."

The move comes around six months after Temasek initiated an internal review of its investment in FTX, which resulted in a writedown of $275 million.

Ho Ching, wife of Singapore Prime Minister Lee Hsien-loong, used to head Temasek but resigned in October 2022 after 18 years that covered the losses of $4 billion in the US financial crisis and the contrarian investment in FTX.

"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," Temasek Chairman Lim Boon Heng said in a statement posted on Temasek's website.

Temasek did not detail the amount of compensation cut. Temasek had 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 in cryptocurrencies, Urvi Manoj Dugar and Yanitoultra Ngui reported for Reuters.

Temasek also said last year it had conducted "extensive due diligence" on FTX, with its audited financial statement then "showed it to be profitable."

FTX's other backers such as SoftBank Group Corp's Vision Fund and Sequoia Capital had also marked down their investment to zero after FTX, founded by Sam Bankman Fried, filed for bankruptcy protection in the US last year.

"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," Lim said in the statement on Monday.

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

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