05-30-2023, 11:54 AM
Temasek’s $275 Million Crypto Blunder Leads to Lowered Pay for Management
<p>
The
investment firm Temasek Holdings Pte, which invested $275 million in the cryptocurrency
<a href="https://www.financemagnates.com/terms/e/exchange/" class="terms__main-term" id="b5da6e64-2afe-421d-9b81-16404b7d59d6">exchange</a> FTX, announced at the beginning of the week that it has reduced the
remuneration of the investment team and executive management responsible for
the decision to invest in the now-defunct company.</p><p>‘Collective Accountability’
for FTX Failure</p><p class="MsoNormal">Although
Temasek found no misconduct in the activities of its traders, the Singaporean company
decided to impose 'collective accountability' on the individuals who led to the
investment in <a href="https://www.financemagnates.com/tag/ftx/" target="_blank" rel="follow">FTX</a>. As a result, their compensation was reduced.</p><p class="MsoNormal">After FTX
declared <a href="https://www.financemagnates.com/terms/b/bankruptcy/" class="terms__secondary-term" id="41b3ef0d-d805-441d-8443-121890264e94">bankruptcy</a> in November of last year and triggered a sell-off wave in
the digital asset market, Temasek wrote off $275 million of the investment.</p><p class="MsoNormal">"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. We are disappointed with the outcome of our investment and
the negative impact on our reputation," Lim Boon Heng, the Chairman of
Temasek, said in a statement.</p><p class="MsoNormal">The company
claimed it had thoroughly reviewed FTX's activities and financial statements
before investing in <a href="https://www.financemagnates.com/cryptocurrency/interview/demystifying-crypto-sam-bankman-fried-on-quant-trading-ux-more/" target="_blank" rel="follow">Sam Bankman-Fried's</a> business and had received positive
results from its assessment. At first glance, FTX seemed to be a profitable and
stable business. </p><p class="MsoNormal">However, a
run on customer deposits led to a liquidity crisis for the exchange, and the
value of its assets began to decrease drastically.</p><blockquote class="twitter-tweet"><p lang="en" dir="ltr">Temasek has made a statement on the FTX fraudAdmits damage to their reputationCompensation of employees reducedWhile FTX creditors lose their life savings, mental health and some reported suicides - not exactly fair <a href="https://t.co/VOCkf8AfSG">pic.twitter.com/VOCkf8AfSG</a></p>— Sunil (FTX 2.0 Champion) (@sunil_trades) <a href="https://twitter.com/sunil_trades/status/1663073800500518913?ref_src=twsrc%5Etfw">May 29, 2023</a></blockquote><p>From $1b in Revenues to a Sudden Collapse</p><p class="MsoNormal">FTX had
initially established itself as one of the most trustworthy crypto exchanges.
The platform's Founder and CEO, an ex-Wall Street quantitative trader who also helmed
Alameda Research, had carved a niche for himself as a vocal personality in the
crypto sphere and had amassed considerable wealth through these ventures.</p><p class="MsoNormal">However,
<a href="https://www.financemagnates.com/cryptocurrency/ftx-the-rise-the-fall-and-the-reaction/" target="_blank" rel="follow">FTX's troubles began to unfold in November 2022</a>. Changpeng Zhao, the Founder
and CEO of Binance, confirmed the decision to divest their holdings of FTX's native
FTT tokens, casting doubt over the financial solidity of their competitor.
Binance had come into possession of these FTT tokens by selling its
stake in FTX.</p><p class="MsoNormal">Although
Zhao didn't provide specific reasons, his decision was likely influenced
by Coindesk's report that shed light on the financial state of Alameda
Research, Bankman-Fried's trading firm. As of the end of June 2022, Alameda's
assets stood at a substantial $14.6 billion, with 'unlocked FTT' accounting for
$3.66 billion, the largest asset entry, and 'FTT collateral' making up another
$2.16 billion, the third largest asset category.</p><p class="MsoNormal">At one
point, the market was hopeful that Binance might step in to rescue FTX. However, Zhao withdrew his proposal, which served as the
final blow to FTX. Given its association with Alameda Research, FTX had links
to several prominent funds and other crypto companies. In the wake of FTX's problems, this relationship sparked widespread market fear, leading to the
downfall of several other businesses as well.</p><p class="MsoNormal">In one of
the most recent updates regarding the fallen exchange, the US Department of
Treasury and Internal Revenue Service (IRS) <a href="https://www.financemagnates.com/cryptocurrency/us-tax-department-claims-44-billion-from-bankrupt-ftx/" target="_blank" rel="follow">has filed 45 claims</a>, totaling
about $44 billion, against the company and its affiliates.</p>
This article was written by Damian Chmiel at www.financemagnates.com.
https://www.financemagnates.com//cryptoc...anagement/
<p>
The
investment firm Temasek Holdings Pte, which invested $275 million in the cryptocurrency
<a href="https://www.financemagnates.com/terms/e/exchange/" class="terms__main-term" id="b5da6e64-2afe-421d-9b81-16404b7d59d6">exchange</a> FTX, announced at the beginning of the week that it has reduced the
remuneration of the investment team and executive management responsible for
the decision to invest in the now-defunct company.</p><p>‘Collective Accountability’
for FTX Failure</p><p class="MsoNormal">Although
Temasek found no misconduct in the activities of its traders, the Singaporean company
decided to impose 'collective accountability' on the individuals who led to the
investment in <a href="https://www.financemagnates.com/tag/ftx/" target="_blank" rel="follow">FTX</a>. As a result, their compensation was reduced.</p><p class="MsoNormal">After FTX
declared <a href="https://www.financemagnates.com/terms/b/bankruptcy/" class="terms__secondary-term" id="41b3ef0d-d805-441d-8443-121890264e94">bankruptcy</a> in November of last year and triggered a sell-off wave in
the digital asset market, Temasek wrote off $275 million of the investment.</p><p class="MsoNormal">"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. We are disappointed with the outcome of our investment and
the negative impact on our reputation," Lim Boon Heng, the Chairman of
Temasek, said in a statement.</p><p class="MsoNormal">The company
claimed it had thoroughly reviewed FTX's activities and financial statements
before investing in <a href="https://www.financemagnates.com/cryptocurrency/interview/demystifying-crypto-sam-bankman-fried-on-quant-trading-ux-more/" target="_blank" rel="follow">Sam Bankman-Fried's</a> business and had received positive
results from its assessment. At first glance, FTX seemed to be a profitable and
stable business. </p><p class="MsoNormal">However, a
run on customer deposits led to a liquidity crisis for the exchange, and the
value of its assets began to decrease drastically.</p><blockquote class="twitter-tweet"><p lang="en" dir="ltr">Temasek has made a statement on the FTX fraudAdmits damage to their reputationCompensation of employees reducedWhile FTX creditors lose their life savings, mental health and some reported suicides - not exactly fair <a href="https://t.co/VOCkf8AfSG">pic.twitter.com/VOCkf8AfSG</a></p>— Sunil (FTX 2.0 Champion) (@sunil_trades) <a href="https://twitter.com/sunil_trades/status/1663073800500518913?ref_src=twsrc%5Etfw">May 29, 2023</a></blockquote><p>From $1b in Revenues to a Sudden Collapse</p><p class="MsoNormal">FTX had
initially established itself as one of the most trustworthy crypto exchanges.
The platform's Founder and CEO, an ex-Wall Street quantitative trader who also helmed
Alameda Research, had carved a niche for himself as a vocal personality in the
crypto sphere and had amassed considerable wealth through these ventures.</p><p class="MsoNormal">However,
<a href="https://www.financemagnates.com/cryptocurrency/ftx-the-rise-the-fall-and-the-reaction/" target="_blank" rel="follow">FTX's troubles began to unfold in November 2022</a>. Changpeng Zhao, the Founder
and CEO of Binance, confirmed the decision to divest their holdings of FTX's native
FTT tokens, casting doubt over the financial solidity of their competitor.
Binance had come into possession of these FTT tokens by selling its
stake in FTX.</p><p class="MsoNormal">Although
Zhao didn't provide specific reasons, his decision was likely influenced
by Coindesk's report that shed light on the financial state of Alameda
Research, Bankman-Fried's trading firm. As of the end of June 2022, Alameda's
assets stood at a substantial $14.6 billion, with 'unlocked FTT' accounting for
$3.66 billion, the largest asset entry, and 'FTT collateral' making up another
$2.16 billion, the third largest asset category.</p><p class="MsoNormal">At one
point, the market was hopeful that Binance might step in to rescue FTX. However, Zhao withdrew his proposal, which served as the
final blow to FTX. Given its association with Alameda Research, FTX had links
to several prominent funds and other crypto companies. In the wake of FTX's problems, this relationship sparked widespread market fear, leading to the
downfall of several other businesses as well.</p><p class="MsoNormal">In one of
the most recent updates regarding the fallen exchange, the US Department of
Treasury and Internal Revenue Service (IRS) <a href="https://www.financemagnates.com/cryptocurrency/us-tax-department-claims-44-billion-from-bankrupt-ftx/" target="_blank" rel="follow">has filed 45 claims</a>, totaling
about $44 billion, against the company and its affiliates.</p>
This article was written by Damian Chmiel at www.financemagnates.com.
https://www.financemagnates.com//cryptoc...anagement/