Ontario Academics’ Pension Plan (OTPP), one of many largest pension plans on this planet, is writing down its funding within the bankrupt crypto trade FTX. “Latest reviews recommend potential fraud performed at FTX which is deeply regarding for all events,” the plan states.
Main Canadian Pension Plan Writes Down FTX Funding
Ontario Academics’ Pension Plan (OTPP), Canada’s third largest pension fund, issued a press release Thursday concerning its funding within the collapsed cryptocurrency trade FTX. The OTPP, which presently has about C$243 billion ($182 billion) in internet belongings, invests for 333,000 working and retired lecturers, its web site reveals.
The assertion explains that the Ontario Academics’ Enterprise Development (TVG) fund invested C$75 million in FTX Worldwide and its U.S. entity, FTX US, in October final 12 months. In January, the fund made a follow-up funding of C$20 million in FTX US.
Ontario Academics’ Pension Plan detailed:
Our funding represented lower than 0.05% of our whole internet belongings and equated to possession of 0.4% and 0.5% of FTX Worldwide and FTX US, respectively.
“Latest reviews recommend potential fraud performed at FTX which is deeply regarding for all events,” the assertion provides. “We totally assist the efforts of regulators and others to overview the dangers and causes of failure for this enterprise.”
The pension plan famous:
We shall be writing down our funding in FTX to zero at our 12 months finish … We’re disenchanted with the end result of this funding, take all losses significantly and can use this expertise to additional strengthen our method.
“The monetary loss from this funding may have restricted influence on the plan, given its measurement relative to our whole internet belongings and our sturdy monetary place,” the assertion concludes.
FTX filed for Chapter 11 chapter final week. Former CEO Sam Bankman-Fried additionally stepped down and was changed by John Ray III, a veteran insolvency skilled who oversaw the liquidation of Enron. “By no means in my profession have I seen such a whole failure of company controls and such a whole absence of reliable monetary data as occurred right here,” Ray mentioned in a court docket submitting Thursday.
Not too long ago, the Singapore authorities’s Temasek Holdings, Paradigm, and Sequoia Capital equally introduced that they’re writing down your entire worth of their FTX investments.
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