Temasek cuts compensation for staff responsible for FTX investment

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Singapore's Temasek Holdings said it cut compensation for the team that recommended investing in the now-bankrupt FTX cryptocurrency exchange and for senior management, as they take 'collective accountability' for the failed investment. The cuts were disclosed in a statement on Monday (May 29), a rare announcement for sovereign funds whose investment decisions and compensations are not public knowledge. The move...

Singapore's Temasek Holdings said it cut compensation for the team that recommended investing in the now-bankrupt FTX cryptocurrency exchange and for senior management, as they take "collective accountability" for the failed investment.

"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.

FTX, founded by Sam Bankman-Fried, was once one of the most valuable start-ups in the fast-growing digital currency sector globally, reaching a valuation of $32 billion last year after raising $400 million from investors including SoftBank. 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 and Sequoia Capital had also marked down their investment to zero after FTX filed for bankruptcy protection in the United States in November.

 

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