Ontario Teachers’ Pension Fund Cancels Entire Investment in Bankrupt Crypto Exchange FTX, Citing ‘Potential Fraud’ – Featured Bitcoin News

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The Ontario Teachers’ Pension Plan (OTPP), one of the largest pension plans in the world, is canceling its investment in bankrupt crypto exchange FTX. “Recent reports suggest potential fraud being conducted at FTX, which is of deep concern to all parties,” the plan reads.

Major Canadian Pension Plan Writes Down FTX Investment

The Ontario Teachers’ Pension Plan (OTPP), the third-largest pension fund in Canada, released a statement on Thursday regarding its investment in the collapse of cryptocurrency exchange FTX. Teachers’, which currently has about C$243 billion ($182 billion) in net assets, invests for 333,000 active and retired teachers, its website says.

The statement explains that the Ontario Teachers’ Venture Growth (TVG) fund invested C$75 million in FTX International and its US arm, FTX US, in October last year. In January, the fund made a C$20 million follow-on investment in FTX US.

Ontario Teachers’ Pension Plan details:

Our investment represented less than 0.05% of our total net assets and was equivalent to owning 0.4% and 0.5% of FTX International and FTX US, respectively.

“Recent reports suggest potential fraud being conducted at FTX, which is of deep concern to all parties,” the statement added. “We fully support the efforts of regulators and others to examine the risks and causes of failure of this business.”

The pension plan noted:

We will reduce our investment in FTX to zero at the end of our year… We are disappointed with the outcome of this investment, take all losses seriously and will use this experience to further strengthen our approach.

“The financial loss from this investment will have a limited impact on the plan, given its size relative to our total net assets and our strong financial position,” the statement concluded.

FTX filed for Chapter 11 bankruptcy last week. Former CEO Sam Bankman-Fried also resigned and was replaced by John Ray III, a seasoned insolvency practitioner who oversaw the liquidation of Enron. “Never in my career have I seen such a complete failure of corporate controls and such a complete absence of reliable financial reporting as has happened here,” Ray said in a filing Thursday.

Recently, Singapore government Temasek Holdings, Paradigm and Sequoia Capital also announced that they are writing the full value of their FTX investments.

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What do you think of the Ontario Teachers’ Pension Plan investment in FTX? Let us know in the comments section below.

Kevin Helms

An economics student from Austria, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests include Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

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