May 31 - Plus, what Ron DeSantis thinks about bitcoin. When a crypto exchange valued at $32 billion collapses, the investors who put money into it are left in an uncomfortable position. This week, Singapore's Temasek finished a six-month review into what went wrong. Meanwhile, regulators around the world are still looking to rein in the risks in the crypto space.
* Singapore’s Temasek cuts staff compensation after failed FTX investment
* Bankman-Fried charges should not be tossed, prosecutors say
* EU watchdog calls for curbing leverage in crypto trading
Temasek’s FTX reckoning
Temasek, Singapore’s state investor, was one of the biggest names to have invested in FTX before it collapsed. It put in around $275 million, which it then wrote down to zero. Temasek said it had done “extensive due diligence” on FTX and seen an audited financial statement that showed it to be profitable.
Now, after a six-month internal review of what went wrong, the investor said on Monday it reduced the pay of the team who recommended investing in FTX, and for senior management, as part of a move to take “collective accountability” for the investment. Temasek’s chairman said there had been no misconduct by the investment team, but acknowledged the “negative impact” on Temasek’s reputation. Meanwhile, U.S. presidential hopeful Ron DeSantis spoke in favour of allowing individuals to invest in cryptocurrencies, arguing that the incumbents in Washington “have it out for Bitcoin”.
Here’s exactly what he said: "You have every right to do Bitcoin. The only reason these people in Washington don't like it is because they don't control it. And they're central planners, and they want to have control over society. And so Bitcoin represents a threat to them... I just do not have an itch to have to control everything that people may be doing in this space. And I think that the current regime clearly they have it out for Bitcoin and if it continues for another four years, you know, they'll probably end up killing it."
* FTX case continues: Earlier this month, Bankman-Fried asked a judge to dismiss most of the counts against him. On Monday, U.S. prosecutors said they oppose this. Oral arguments will be heard on June 15.
* Regulation latest: An EU watchdog said there should be limits on leveraged bets on crypto assets to preserve financial stability. The UAE’s central bank issued new rules for financial institutions dealing with virtual assets and Norway’s central bank said the country should make its own crypto regulations rather than waiting for international rules.
* Eyeball scanner: The chief executive of OpenAI has raised $115 million for a crypto start-up called Worldcoin. The project appears to give people cryptocurrency for free, but gathers their biometric data (specifically iris scans) before doing so.
* Crypto for fentanyl: Suspected sellers of the chemicals that are used to manufacture fentanyl have received $38 million in crypto payments since 2018, according to Chainalysis.
* Insider trading settlement: A former Coinbase product manager and his brother have agreed to settle SEC charges relating to insider trading.
* Binance bitcoin: Bitcoin prices on the Australian arm of Binance were at a 20% discount to rival exchanges on Tuesday, in a sign customers were seeking to exit their positions quickly. Binance said earlier this month that some customers in Australia will not be able to deposit or withdraw money after a third-party payments provider cut off its service. Panel Event
Reuters U.S. Finance Editor Lananh Nguyen will be in conversation with Holly O’Neil, President of Retail Banking at Bank of America, talking about U.S. consumer finances and the banking industry in its most tumultuous period since the 2008 financial crisis. The event is free to watch online, at 10:00 ET (1400 GMT) today, and available on-demand afterwards. Link here.
What I'm reading
* Reuters opinion columnist Hugo Dixon examines the challenges that would arise if Donald Trump returned to the White House. It comes down to Ukraine, free trade, and global warming, he says.
* Since 2021, China has targeted billions of social media accounts in a bid to "clean" its cyberspace and make it easier for authorities to control. In two months, its cyberspace regulator said it deleted 67,000 social media accounts.
* Experienced tech investors are looking for undervalued opportunities in the world of artificial intelligence. Here’s how they’re trying to cut through the hype. (Reporting by Elizabeth Howcroft Editing by Mark Potter)