Temasek Singapore reduces employee compensation following the FTX debacle

Temasek, a Singaporean business, has reduced salaries for employees who were in charge of the investment in the now-bankrupt cryptocurrency exchange FTX, despite the fact that it has ruled out any « misconduct. »

After conducting an internal examination into the investment six months prior, the state fund decided to write off the $275 million investment.

Temasek chairman Lim Boon Heng stated in a statement posted on the corporate website that the board of the firm received the internal evaluation of the investment from the independent team.

He added,

“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.”

Even if the upside potential is considerably bigger, startup investments are intrinsically riskier than investments in publicly traded corporations.

The majority of venture capital firms have reported staggering losses amid the downturn in unlisted businesses, with SoftBank’s Vision firms reporting a loss of $32 billion for the fiscal year that ended in March.

Temasek, on the other hand, defended its startup investments and stated,

« While there are inherent risks whenever we invest, we believe that we have to invest in new sectors and emerging technologies to understand how these areas may impact the business and financial models of our existing portfolio, and whether they would be drivers of future value in an ever-changing world. »

Temasek reduces the salaries of those working on the FTX investment

Temasek was the largest investor in FTX with a $275 million commitment, albeit it did not disclose how much of the company’s staff remuneration it had reduced.

Though less than 0.1% of the fund’s overall portfolio, which was valued at $304 billion at the end of March, was invested by Temasek in FTX.

According to Temasek’s statement from the previous year, FTX’s due diligence « showed it to be profitable. »

Heng said in his note today,

« 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. »

Despite this, he was honest and said, « We are disappointed with the outcome of our investment and the detrimental effect on our reputation. »

The FTX debacle was one of the things that alarmed cryptocurrency investors last year. Bitcoin is currently valued at roughly $28,000 as the market has recovered this year.

FTX Fiasco: $44 billion in claims from the IRS

Before it itself went bankrupt, FTX incidentally assisted in saving a number of tiny crypto companies. Markets experienced shock following the debacle. Since then, regulators have made the rules more stringent.

The US Department of Treasury and Internal Revenue Service (IRS) have asserted claims against FTX and its affiliates totaling a staggering $44 billion.

Sam Bankman-Fried, the man behind FTX and better known by his initials « SBF, » has requested to have 10 of the 13 allegations against him dropped.

The European Union’s Economic and Financial Affairs Council earlier this month passed the first complete set of crypto laws in history, which hold exchanges accountable for lost consumer assets.

The Department of Justice in the US is taking action against cryptocurrency exchanges that participate in or support criminal conduct.

The majority of market players concur that putting a stop to dishonest individuals would eventually result in stronger crypto marketplaces.

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