It appears the FTX carnage has no end: the crypto exchange’s disappearing fortunes have left another major investor in the dust, this time a prominent Canadian pension fund.
The Ontario Teachers’ Pension Plan conceded taking part in two funding rounds for FTX in 2021 and 2022, under the guise the Bahamas-based platform was a technology “that’s shaping future markets,” and serving as an exchange rather than a cryptocurrency. The pension fund, under the direction of Olivia Steedman, invested US$75 million into FTX.US and FTX International, which was followed by a second investment of US$20 million into the exchange’s US entity.
Steedman made the investment via the pension fund’s Teachers’ Venture Growth platform in an effort to gain exposure to an emerging part of the tech sector, armed with the belief that digital assets “are here to stay.” However, Teachers’ on Thursday acknowledged the grave error— “naturally, not all of the investments in this early-stage asset class perform to expectations,” read a statement published on the pension fund’s website.
“While there is uncertainty about the future of FTX, any financial loss on this investment will have limited impact on the Plan, given this investment represents less than 0.05% of our total net assets,”The Canadian pension fund explained.
Information for this briefing was found via the Ontario Teachers’ Pension Plan. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
