Cryptocurrency investments have caused the Ontario Teachers’ Pension Plan (OTPP) to lose more than $125 million.
• Also read: Big Name Cryptocurrency Exchange FTX Goes Bankrupt
• Also read: FTX claims to make “every effort” to secure the assets
Teachers invested $75 million in October 2022 in FTX International and its US unit ( FTX.US ) before making a second investment of $20 million last January, for a total of $95 million (about CAD 125 million).
However, the cryptocurrency giant filed for US bankruptcy last week, while recent reports suggest there may have been fraud at FTX, Teachers’ said on Thursday.
“We will reduce our investment in FTX to zero by the end of our year. The financial loss resulting from this placement will have a limited impact on the Plan given its size relative to our total net assets and our solid financial position.
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According to the organization, this investment from Teacher’s Venture Growth (TVG) represents less than 0.05% of the organization’s net assets. The pension scheme owned 0.4% and 0.5% of FTX International and FTX.US respectively.
“However, we are disappointed with the outcome of this investment, we take all losses seriously and will use this experience to further strengthen our approach,” Teachers’ added.