Temasek Cuts Pay for Staff Responsible for $275M FTX Investment
- The investment team behind Temasek’s $275 million investment into FTX prior to its collapse “took collective accountability” and had their compensation cut.
- While the company was the second largest outside investor in FTX, it was one of the first to write off its entire investment only days after the collapse of the exchange.
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Singapore-based investment firm Temasek has decided to cut the pay for the executives that were responsible for the $275 million investment into FTX and FTX.US, the company said in a press release on 29 May.
According to the announcement, Temasek used an independent team to conduct an internal review of the $210 million investment into FTX International and the $65 million invested in FTX.US. While the investigation concluded that there was “no misconduct” internally, both the investment team and senior management “took collective accountability” and had their compensations cut. Tamasek’s chairman, Lim Boon Heng, said in a statement:
“With 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. Nevertheless, we are disappointed with the outcome of our investment, and the negative impact on our reputation.”
Temasek was reportedly the second largest outside investor in FTX, owning around 1% stake in FTX and a 1.5% stake in FTX.US at the time of their collapse. Only days after the exchanges went bankrupt, Temasek said it had written off the entirety of its $275 million investment, noting that it represented only 0.09% of the firm’s net protfolio value of around $293 billion.
The company also claimed that it had conducted an eight months long due diligence into FTX prior to its investment, and had reviewed its audited financial statements, assessed regulatory risks, cyber security threats, and sought legal advice.
- The New York Jurors took 4 fours of deliberating before pronouncing the former FTX CEO guilty of all seven charges of fraud and conspiracy to commit fraud.
- Bankman-Fried will now have to appear in court on 28 March, 2024, where he will face a potential maximum sentence of 115 years in prison.
Former CEO of FTX Sam Bankman-Fried leaves the Federal Court in New York after pleading not guilty, 3 January, 2022.
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- A little over $13 million in altcoins were sent to crypto exchanges Binance and Coinbase in the past 24 hours, which is in accordance with a September court order.
- The court ordered a phased liquidation process, which allows the bankruptcy estate to sell $3.4 billion worth of digital assets over a certain period of time.
- Joseph Pimbley, a member of litigation consulting firm PF2 Securities, will try to rebuff testimonies from Caroline Ellison, Gary Wang, Nishad Singh, and Adam Yedidia.
- During his testimony Pimbley will try to establish a timeline for the FTX-Alameda line of credit, and convince the jury it fluctuated between $1 billion and $3 billion between 2021 and 2022.