Temasek cut pay for his staff who were in charge of his investment in FTX, several months after the crypto exchange collapsed. Singapore’s state-owned investment firm canceled its entire $275 million investment in the FTX group last year.
An unflattering balance sheet
Temasek requested an independent internet review to understand the failure of his FTX investment. The independent team found no fault on the part of Temasek’s investment team. Nevertheless, the team and senior management “took collective responsibility and saw their compensation reduced” as the investment firm said on Monday. That said, nothing was said about the amount of the reduced compensation.
Indeed, it is in November 2022 that Temasek cancels all its investments in FTX. The crypto exchange had just declared bankruptcy, gobbling up billions of dollars in investment of which $275 million belonged to Temasek. As we remind TheBlockTemasek had taken a 1% stake in FTX International and a 1.5% stake in FTX US as part of his investments.
Temasek, another victim of FTX
Needless to say, Temasek expressed his disappointment via-à-vis the behavior of FTX executives. The company recognizes that it should have been more careful about the actions of the exchange of Sam Bankman-Fried. But she mostly blames the blame on FTX executives
” With FTX, as alleged by prosecutors and as admitted by key executives of FTX and its subsidiaries, there was fraudulent conduct intentionally concealed from investors, including Temasek. “said the sovereign wealth fund.
Bankman-Fried allegedly used funds from FTX clients to support his now-bankrupt crypto trading company, Alameda Research. In any case, this is what can be read in the indictment of the American federal prosecutors accused. The ex-CEO of FTX pleaded not guilty of all charges. He thus took the risk of being sentenced to life imprisonment at the end of his trial next October.
The risk taken by Bankman-Fried to plead not guilty is even greater since his closest associates have pleaded guilty. They are Nishad Singh, Gary Wang and Caroline Ellison. The latter should also testify against him in court. How could he get away with it when his subordinates admitted to being guilty?
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