Temasek Cuts Salaries For $275 Million FTX Investment Failure

Key Points:

• Temasek cut salaries of the investment team after taking a $275 million impairment on FTX.
• The firm led a $200 million B+ round of financing in Amber, another crypto company that was on the verge of bankruptcy.
• The investment team and senior management took collective accountability for the outcome of their investment in FTX.

Temasek cut salaries after taking a $275 million impairment on FTX and led a $200 million B+ round of financing in Amber. An independent team reviewed the investment, and the investment team and senior management took accountability.

Temasek, a Singapore state-owned investment company, recently made headlines when it announced that the team responsible for investing in FTX would take collective responsibility for the investment decision and cut their salaries. This comes after Temasek took a $275 million impairment on FTX to zero. However, the firm also led another US$200 million B+ round of financing in Amber, another crypto company on the verge of bankruptcy.

According to Temasek, the company seeks to deliver sustainable returns over the long term. Investing in new sectors and emerging technologies is key to understanding how these areas may impact their existing portfolio’s business and financial models and whether they would be drivers of future value in an ever-changing world. This is why they invest in early-stage companies.

However, with FTX, prosecutors alleged that there was fraudulent conduct intentionally hidden from investors, including Temasek. Despite this, Temasek stated that there was no misconduct by the investment team in reaching their investment recommendation.

An independent team conducted an internal review of the investment, and the findings were directly presented to the Board Risk & Sustainability Committee and to the board. Nevertheless, Temasek is disappointed with its investment’s outcome and its negative impact on its reputation. The investment team and senior management, who are ultimately responsible for investment decisions made, took collective accountability and had their compensation reduced.

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