Singapore's sovereign fund Temasek Holdings said today (29th) that due to the company's failure to invest in the now-defunct cryptocurrency exchange FTX last year, it has implemented salary cuts for its investment team and senior executives.

After conducting an internal review, Temasek Chairman Lim Boon Heng issued a statement today stating that although the investment team was not found to have acted inappropriately when reaching the investment recommendation, it ultimately decided to "collectively hold accountable" the investment team and senior management. liability, thereby reducing their compensation.

In two rounds of financing in October 2021 and January 2022, Temasek invested US$210 million and US$65 million in FTX International and FTX US respectively, using a total of 0.09% of the funds in the investment portfolio. Before the investment, it spent approximately 8 months for due diligence. After FTX declared bankruptcy last November, Temasek immediately said it had written down its entire investment in FTX.

Later, an independent team of Temasek conducted an internal review of the above-mentioned investment behavior, and the report results were directly submitted to the board of directors. Temasek did not specify the size of the pay cuts or how many employees would be affected. Lin Wenxing said in the statement:

Regarding the FTX case, as the prosecutors alleged, and as executives of FTX and its affiliates admitted frankly, the company deliberately defrauded investors including Temasek. Despite this, we are not satisfied with the results of this investment. and remaining disappointed that our reputation has been tarnished.

Singapore's Finance Minister and Prime Minister-elect Lawrence Wong told Parliament last November that Temasek's reputation had been damaged by its investment in FTX. He also once suggested that although Singapore will continue to adopt an experimental attitude towards blockchain technology, its optimistic view of blockchain has proven to be "overly optimistic."

Temasek said that while there are inherent risks in every investment, it invests in new areas and emerging technologies "to understand how these areas impact the corporate and financial models of our existing portfolio and to assess whether they may continue to change." "The world in China drives the future," and said that this is why Temasek invests in new startups.

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