Those responsible for Temasek’s $275 million mistake have taken a salary reduction as a consequence of the damage done to the company’s image by backing the exchange.
On Sunday, Singapore’s Temasek announced it has taken action against the FTX team and management responsibility for the company’s $275 million investment.
According to a statement, team members’ pay was cut after the decision to support the exchange, which damaged its image.
This comes after an external party conducted an internal audit and reported their results to Singapore’s sustainability board.
Even though the investigation uncovered no evidence of wrongdoing on the part of team members, Temasek’s move to punish them might be seen as an effort to avoid embarrassment.
Temasek said that those responsible had accepted “collective accountability” for the $210 million injected into the worldwide market in return for a 1% minority ownership. The US arm of the exchange received an additional $65 million in funding between October 2021 and January 2022.
Temasek was quick to write down its FTX holdings when the exchange collapsed in early November of last year.
The Singaporean government owns two significant sovereign wealth funds, of which the holding firm is one. Founded in 1974, the firm now oversees a total of around S$403 billion ($297.8 billion) in assets, most of which are located in Singapore and the rest of Asia.
Temasek expressed dissatisfaction with the return on its investment and pointed to what it termed “fraudulent” behaviour on the part of FTX, which was “intentionally hidden” from shareholders.
Singapore has been trying to clear its name from allegations that it should have done more to protect its residents and businesses from monetary losses.
However, the fund acknowledged its dissatisfaction with the investment’s results and the damage to its image that resulted.
Top employees, including CEO Sam Bankman-Fried, are allegedly responsible for the loss of billions of dollars in FTX crypto that was diverted to the trading arm of the company, Alameda Research.
Since many investors reportedly lost a lot of money in the exchange sector, there has been a protracted and widespread sell-off.
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