Nov 10, 2022
Ontario Teachers' Pension Plan invested US$95M into failing crypto platform FTX
The Canadian Press
The driver of the FTX problem is lack of regulation, there's no oversight: Cole Diamond
The Ontario Teachers' Pension Plan says it invested US$95 million into failing cryptocurrency exchange platform FTX Trading.
Rival exchange platform Binance pulled out of a deal to purchase FTX due to significant concerns, sending cryptocurrency prices falling, with Bitcoin sinking to a two-year low.
FTX is now being investigated for potential securities violations.
OTPP says it invested in FTX's international and U.S. arms through its Teachers' Venture Growth platform so it could gain small-scale exposure to this emerging area.
It says any financial loss on its investment in FTX will have limited impact on the pension plan because the investment represents less than 0.05 per cent of its total net assets.
Customers were fleeing FTX after concerns arose that it might not have sufficient capital.