Temasek Employees Get Salary Cut After Failed FTX Investment
Temasek, a wealth management firm based in Singapore has cut the salary of the staff who were involved in its FTX investment. Temasek had invested $275 million in FTX which they wrote off. After an internal review was conducted by the team at Temasek, they found out that the employees were not involved in any kind of misconduct.
Temasek said that they had spent around 8 months on the FTX case last year. The company also said that they are disappointed with the negative impact of their investments on their reputation. Temasek has an asset under management of a whopping $300 billion. The $275 million invested in FTX accounts for just around 0.09% of its total assets under management.
Temasek expressed a cautious approach towards the cryptocurrency industry, as it clarified that its investments in FTX International and its U.S. counterpart, with stakes of 1% and 1.5% respectively, were not specifically focused only on cryptocurrencies.
Along with Temasek, Other Firms also Affected
Not just Temasek, many FTX backers such as Sequoia Capital and Vision Fund have also paid a hefty price as they had to mark down their investments to zero after FTX filed for bankruptcy last year. Temasek’s chairman Lim Boon Heng said that the company is focused on delivering long-term returns to clients by investing in companies that are in the early stages. He also said that they need to be extra cautious considering the risks involved in it.
Meanwhile, the situation in FTX is pretty tough as Sam Bankman Fried has not pleaded guilty and the new CEO of FTX John Ray III is having a tough time sailing the ship. They are still not able to recover all the funds and pay back to clients.
