Singapore's state-owned Temasek will reduce the compensation of certain staff over losses linked to investments in fallen crypto exchange FTX.
Temasek Holdings reduced compensation for its senior management and the team responsible for investing in Sam Bankman-Fried’s FTX, according to a statement.
The Singapore state-owned investor recorded a $275 million loss from investing in FTX.
«As alleged by prosecutors and as admitted by key executives at FTX and its affiliates, there was fraudulent conduct intentionally hidden from investors, including Temasek,» said chairman Lim Boon Heng. «We are disappointed with the outcome of our investment, and the negative impact on our reputation.»
Internal Review
The statement follows an internal review that found no misconduct by Temasek’s investment team though it took «collective accountability» alongside senior management.
In the midst of FTX’s downfall in 2022, Temasek said that it had conducted extensive due diligence on the crypto exchange, including a review of its audited financial statement.
Bankman-Fried was arrested in December 2022 by police in the Bahamas over the FTX failure. He has pleaded not guilty to all charges linked to various accusations, including fraud, and is scheduled to face trial in October.
