Temasek Takes Action Following Failed FTX Investment, Reduces Salaries of Responsible Staffs
Temasek, the prominent Singapore sovereign wealth fund managing approximately $300 billion in assets, has announced a reduction in compensation for its staff involved in the ill-fated FTX investment. The move comes after the collapse of the crypto exchange resulted in substantial losses for the fund.
Following an independent review of the investment, Temasek clarified that there was no misconduct by its investment team. However, in a show of collective accountability, both the team and senior management have agreed to a decrease in their compensation. The precise extent of the salary reduction was not disclosed by the sovereign wealth fund.
Earlier, Temasek had invested $275 million in FTX and FTX U.S., but subsequent bankruptcy filings by Sam Bankman-Fried’s crypto group forced the fund to write off the entirety of its investments. Within its portfolio, Temasek held a 1% stake in FTX International and a 1.5% stake in FTX U.S.
Expressing disappointment with the outcome and the detrimental impact on its reputation, the sovereign fund revealed that it had engaged in an extensive due diligence process spanning eight months before the investment in FTX. Temasek noted,
“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.”
Legal proceedings in the United States have seen federal prosecutors accuse Bankman-Fried of utilizing FTX customer funds to support his now-defunct crypto trading firm, Alameda Research. Maintaining his innocence, Bankman-Fried has pleaded not guilty to all charges and awaits trial scheduled for October. If convicted, he could face a life sentence.
In a significant development, three key members of Bankman-Fried’s inner circle – Nishad Singh, Gary Wang, and Caroline Ellison – have already entered guilty pleas and are anticipated to serve as witnesses against him during the trial.
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