Singapore’s Temasek Punishes Execs Who Invested In FTX

The decision to back the exchange, which negatively impacted Temasek’s reputation, has resulted in a pay cut for those behind its doomed $275 million investment

article-image

LekaSergeeva/Shutterstock modified by Blockworks

share

Singapore state holding company Temasek said Sunday it has taken action against the team and senior management behind its $275 million investment into FTX.

The decision to back the exchange, which adversely affected its reputation, has led to a reduction in the salaries of the team members involved, according to a statement.

It follows an independent internal review by an outside party whose findings were presented to the city-state’s sustainability board

While the review found no misconduct from team members had occurred, Temasek’s decision to reprimand its employees can be viewed as an attempt to save face.

Those responsible have also accepted “collective accountability” for investing $210 million into the global exchange for a 1% minority stake, Temasek said.  A further $65 million in investments were made to the exchange’s US subsidiary in October 2021 through to January 2022. 

Following the exchange’s downfall in early November of last year, Temasek immediately moved to write down all of its FTX investments.

The holding company is one of two major sovereign wealth funds owned by the government of Singapore. Incorporated in 1974, the company manages a portfolio of around S$403 billion ($297.8 billion) as of March 2022, primarily in Singapore and across the Asia region.

Registering disappointment with the outcome of its investment, Temasek called out FTX’s “fraudulent” activity in the statement as being “intentionally hidden” from investors.

For its part, Singapore has attempted to distance itself from blame that it could have done more to prevent financial harm to citizens and entities within its borders.

“Nevertheless, we are disappointed with the outcome of our investment and the negative impact on our reputation,” the fund said.

CEO Sam Bankman-Fried and other top executives stand accused of diverting crypto valued in the billions from FTX to its trading unit Alameda Research, which subsequently lost the funds through high-risk market bets.

As a result, the exchange business is alleged to have caused significant losses for numerous investors, leading to a prolonged and widespread sell-off across the industry.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

MON - WED, MARCH 18 - 20, 2024

Digital Asset Summit (DAS) is returning March 2024. What you can expect: And more! Don’t miss out on the opportunity to be in the room when the future of crypto is decided. Join us and help shape the future of our […]

recent research

Research report - cover graphics-2.jpg

Research

Base has doubled-down on its commitment to the Superchain vision, has shown early signs of success with nearly $400M in TVL, and has become home to novel dapps such as friend.tech which has seen significant traction.

article-image

The bitcoin halving slated for April 2024 — an event expected to spur upward price action for BTC — could be a boon for Block’s stock price, analysts say

article-image

Seed Club founder Jess Sloss is excited to “open the doors and let other people see what we’ve been seeing for the last few months”

article-image

Blockchain is a “natural fit” in games based on open economies and user-generated content, says Wyatt

article-image

Their current stance is a half-baked attempt that could stifle innovation and burden an emerging industry

article-image

Maker’s DeFi-focused “subDAO” passed a proposal activating a lending market for DAI on the Gnosis Chain

article-image

Certain creditors could be repaid sooner, with one hedge fund exec telling Blockworks it expects a payout by the end of the year