Temasek expresses regret over FTX investment

Temasek, Singapore’s sovereign wealth fund, has made an unprecedented move by publicly expressing its disappointment with a specific investment and holding those responsible accountable. With a portfolio valued at approximately $300 billion, Temasek is one of the largest investors globally, having invested in various tech startups and industry giants.

In 2016, Temasek acquired 18,181,818 shares in Dell’s holding company Denali, as part of the EMC takeover. Additionally, it had a stake in the now disgraced and collapsed cryptocurrency exchange FTX, which became the subject of a notable Chairman’s Statement released on Monday.

Chairman Lim Boon Heng emphasized the inherent risks in investing and the importance of venturing into new sectors and emerging technologies to understand their potential impact on existing portfolios. However, he acknowledged the fraudulent conduct that had been intentionally concealed from investors, including Temasek, by key executives at FTX and its affiliates.

Expressing disappointment in the outcome of the investment and the subsequent negative impact on Temasek’s reputation, the organization conducted an independent internal review. While the investment team was not found to have engaged in misconduct, both the team and senior management took collective accountability for the investment decisions and had their compensation reduced.

This admission of error is highly unusual and publicly acknowledges that Temasek believes it was deceived by FTX. While some Temasek employees are among those affected by the collapse of the crypto exchange, they have retained their positions, potentially gaining valuable lessons from the experience. Temasek remains committed to fulfilling its charter obligations, which include building people, communities, capabilities, and rebuilding lives in Singapore and beyond.