Ontario Teachers’ Pension Fund Writes Down Entire Investment in Bankrupt Crypto Exchange FTX Citing ‘Potential Fraud’

Ontario Teachers’ Pension Plan (OTPP), 1 of the largest pension plans successful the world, is penning down its concern successful the bankrupt crypto speech FTX. “Recent reports suggest imaginable fraud conducted astatine FTX which is profoundly concerning for each parties,” the program states.

Major Canadian Pension Plan Writes Down FTX Investment

Ontario Teachers’ Pension Plan (OTPP), Canada’s 3rd largest pension fund, issued a connection Thursday regarding its concern successful the collapsed cryptocurrency speech FTX. The OTPP, which presently has astir C$243 cardinal ($182 billion) successful nett assets, invests for 333,000 moving and retired teachers, its website shows.

The connection explains that the Ontario Teachers’ Venture Growth (TVG) money invested C$75 cardinal successful FTX International and its U.S. entity, FTX US, successful October past year. In January, the money made a follow-up concern of C$20 cardinal successful FTX US.

Ontario Teachers’ Pension Plan detailed:

Our concern represented little than 0.05% of our full nett assets and equated to ownership of 0.4% and 0.5% of FTX International and FTX US, respectively.

“Recent reports suggest imaginable fraud conducted astatine FTX which is profoundly concerning for each parties,” the connection adds. “We afloat enactment the efforts of regulators and others to reappraisal the risks and causes of nonaccomplishment for this business.”

The pension program noted:

We volition beryllium penning down our concern successful FTX to zero astatine our twelvemonth extremity … We are disappointed with the result of this investment, instrumentality each losses earnestly and volition usage this acquisition to further fortify our approach.

“The fiscal nonaccomplishment from this concern volition person constricted interaction connected the plan, fixed its size comparative to our full nett assets and our beardown fiscal position,” the connection concludes.

FTX filed for Chapter 11 bankruptcy past week. Former CEO Sam Bankman-Fried besides stepped down and was replaced by John Ray III, a seasoned insolvency nonrecreational who oversaw the liquidation of Enron. “Never successful my vocation person I seen specified a implicit nonaccomplishment of firm controls and specified a implicit lack of trustworthy fiscal accusation arsenic occurred here,” Ray said successful a tribunal filing Thursday.

Recently, the Singapore government’s Temasek Holdings, Paradigm, and Sequoia Capital likewise announced that they are penning down the full worth of their FTX investments.

What bash you deliberation astir Ontario Teachers’ Pension Plan investing successful FTX? Let america cognize successful the comments conception below.

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