Temasek’s internal test found “no misconduct,” but employees who worked on the FTX investment will experience a cut in their pay.
Due to its participation in the now-defunct cryptocurrency exchange FTX, Singapore’s Temasek Holdings has taken action. The corporation has decreased the executive salaries who are in charge of the investment. Temasek once owned 7 million shares of FTX and was a substantial investment in the company.
Temasek came to the conclusion that there was no internal malfeasance after conducting an internal examination of the $275 million investment loss. The investment team and senior management, however, accepted joint responsibility for the loss, which resulted in a decrease in their salary.
Temasek’s action demonstrates the company’s dedication to dealing with the fallout from its investment in FTX and accepting responsibility for the loss sustained. The choice emphasizes how crucial risk management and accountability are in the financial industry.
It was noted that while “there are inherent risks” with any investment, it is vital that Temasek continue investing in new innovation:
“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. “
Only 0.09% of Temasek Holdings’ total portfolio value, which was more than $293 billion at the time of the exchange’s collapse, was lost on its $275 million investment in FTX. Temasek insists that it did extensive due diligence before investing in FTX despite the substantial loss.
The investment’s very tiny share of Temasek’s overall portfolio implies that the company has the resources to sustain such losses. The firm’s claim that it has performed thorough due diligence supports its commitment to making wise investment selections.