{"id":139993,"date":"2023-05-29T09:37:40","date_gmt":"2023-05-29T09:37:40","guid":{"rendered":"https:\/\/crypto-economy.com\/?p=139993"},"modified":"2023-05-29T12:00:06","modified_gmt":"2023-05-29T12:00:06","slug":"temasek-slashes-senior-staff-compensation-over-failed-257m-ftx-investment","status":"publish","type":"post","link":"https:\/\/crypto-economy.com\/temasek-slashes-senior-staff-compensation-over-failed-257m-ftx-investment\/","title":{"rendered":"Temasek Slashes Senior Staff Compensation Over Failed $257M FTX Investment"},"content":{"rendered":"<p style=\"text-align: justify\">Singapore investment firm <strong>Temasek Holdings has cut the compensation of its senior management and the investment team following a <span data-preserver-spaces=\"true\">staggering\u00a0<\/span>$275 million investment loss incurred after the collapse of Sam Bankman-Fried&#8217;s <a href=\"https:\/\/crypto-economy.com\/ftx-successfully-recovers-7-3b-in-assets-and-is-hopeful-for-a-revival\/\" target=\"_blank\" rel=\"noopener\">FTX<\/a>.<\/strong><!--more--><\/p>\n<p style=\"text-align: justify\">It seems the wealth manager has started taking accountability for the reputational damage following the investment loss. On May 29, as per an official <a href=\"https:\/\/www.temasek.com.sg\/en\/news-and-resources\/news-room\/statements\/2023\/our-chairman-statement-on-ftx-internal-review\" target=\"_blank\" rel=\"noopener\">press release<\/a>, Temasek chairman Lim Boon Heng said\u00a0 that an independent finding revealed that there was <em>\u201cno misconduct\u201d<\/em> internally, <strong>it was reported that both its investment team and senior management took <em>\u201ccollective accountability,\u201d<\/em> <\/strong>and had their compensation reduced.<em>\u00a0<\/em>He added the company felt letdown with the outcome of the <a href=\"https:\/\/crypto-economy.com\/investing-in-cryptocurrencies\/\" target=\"_blank\" rel=\"noopener\">investment<\/a>, as well as the negative impact on its reputation, without disclosing the amount of compensation cut.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Singapore&#39;s Temasek cuts pay for staff responsible for FTX investment <a href=\"https:\/\/t.co\/1QQCWSlyjQ\" target=\"_blank\">https:\/\/t.co\/1QQCWSlyjQ<\/a> <a href=\"https:\/\/t.co\/SA0x1VBdQl\" target=\"_blank\">pic.twitter.com\/SA0x1VBdQl<\/a><\/p>\n<p>&mdash; Reuters (@Reuters) <a href=\"https:\/\/twitter.com\/Reuters\/status\/1662969683279069185?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">May 28, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<h2 style=\"text-align: justify\">When Did The Problem Start For Temasek?<\/h2>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">However, Boom Heng added the company has learned its fair share of lessons from the incident such as strengthening the approach to reviewing the governance, management, and controls of a portfolio company,\u00a0<\/span><strong><span data-preserver-spaces=\"true\">emphasizing that it will continue to invest in early-stage companies despite the\u00a0<\/span><em><span data-preserver-spaces=\"true\">&#8220;inherent risks,\u201d<\/span><\/em><span data-preserver-spaces=\"true\">\u00a0associated with any investment<\/span><\/strong><span data-preserver-spaces=\"true\">. The chairman noted,<\/span><\/p>\n<p style=\"text-align: center\"><em>&#8220;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. This is why we invest in some early-stage companies.&#8221;<\/em><\/p>\n<p style=\"text-align: justify\">The move comes after the Singapore state-owned investment firm wrote off all of its $275 million investment in FTX group last year. Temasek had invested $275 million in FTX and FTX U.S. and\u00a0wrote off\u00a0all of its investments to zero after Sam Bankman-Fried&#8217;s crypto group filed for bankruptcy in November. <strong>Temasek had taken a 1% stake in FTX International and a 1.5% stake in FTX U.S. as part of its investments<\/strong>.<\/p>\n<p style=\"text-align: justify\"><a href=\"https:\/\/crypto-economy.com\/wp-content\/uploads\/2023\/05\/FTX-e1685350309623.jpg\"><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter wp-image-139995 size-full\" src=\"https:\/\/crypto-economy.com\/wp-content\/uploads\/2023\/05\/FTX-e1685350309623.jpg\" alt=\"When Did The Problem Start For Temasek? FTX was the cause\" width=\"825\" height=\"299\" srcset=\"https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2023\/05\/FTX-e1685350309623.jpg 825w, https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2023\/05\/FTX-e1685350309623-300x109.jpg 300w, https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2023\/05\/FTX-e1685350309623-768x278.jpg 768w\" sizes=\"(max-width: 825px) 100vw, 825px\" \/><\/a><\/p>\n<h2 style=\"text-align: justify\">FTX Exec Pleads Guilty<\/h2>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">The liquidation of Bahamas-based cryptocurrency exchange FTX began in November 2022, wreaking havoc in the crypto industry. Digital tokens including Bitcoin (BTC) and Ethereum (ETH) plunged to unexpected lows, dragging the crypto market below a $1 trillion valuation.\u00a0<\/span><strong><span data-preserver-spaces=\"true\">Prominent crypto companies reeled under severe liquidity crunch announcing bankruptcies and mass layoffs<\/span><\/strong><span data-preserver-spaces=\"true\">.<\/span><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Nishad Singh, the former director of engineering at now-bankrupt crypto exchange FTX, has agreed to plead guilty to U.S. criminal charges, his lawyer said in court, as U.S. prosecutors ramp up their probe into members of Sam Bankman-Fried&#39;s inner circle <a href=\"https:\/\/t.co\/KinlD4h4Zj\" target=\"_blank\">https:\/\/t.co\/KinlD4h4Zj<\/a> <a href=\"https:\/\/t.co\/8UFekP2XF5\" target=\"_blank\">pic.twitter.com\/8UFekP2XF5<\/a><\/p>\n<p>&mdash; Reuters Legal (@ReutersLegal) <a href=\"https:\/\/twitter.com\/ReutersLegal\/status\/1630608307357401094?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">February 28, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p style=\"text-align: justify\">Recently, <strong>Nishad Singh, the former director of engineering at the bankrupt exchange pleaded guilty to a number of criminal charges<\/strong>, including wire fraud, conspiracy to commit wire fraud on FTX customers, conspiracy to commit money laundering, and conspiracy to defraud the U.S. by violating campaign finance laws.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Singapore investment firm Temasek Holdings has cut the compensation of its senior management and the investment team following a staggering\u00a0$275 million investment loss incurred after the collapse of Sam Bankman-Fried&#8217;s FTX.<\/p>\n","protected":false},"author":21,"featured_media":139998,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[102,84,74],"tags":[5355,4727],"_links":{"self":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/139993"}],"collection":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/users\/21"}],"replies":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/comments?post=139993"}],"version-history":[{"count":0,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/139993\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/media\/139998"}],"wp:attachment":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/media?parent=139993"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/categories?post=139993"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/tags?post=139993"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}