Ontario Teachers’ Pension Plan, which has a total value of $190 billion, has decided to avoid the cryptocurrency industry following the loss of $95 million from their investment in FTX, a defunct digital currency exchange, reported Financial Times.
In 2021 and early 2022, Ontario Teachers’ Pension Plan (OTPP) joined other well-known money managers in investing in FTX. Many viewed this as an indication that reputable, top-tier investors were endorsing the rapidly expanding, albeit loosely regulated, cryptocurrency industry.
In November 2022, OTPP entirely wrote off its investment in FTX after the exchange suffered a significant downfall. Meanwhile, FTX’s prominent founder Sam Bankman-Fried is currently facing accusations of fraud.
OTPP chief executive Jo Taylor added,
Additionally, the Ontario Teachers’ Pension Plan (OTPP) is avoiding the crypto sector after writing off its $95 million investment in FTX, a failed digital currency exchange. Despite being a relatively small investment, OTPP, along with other FTX backers, has been scrutinized for investing in a company whose founder is accused of fraud and embezzlement. OTPP’s CEO, Jo Taylor, has stated the importance of caution and feedback from members in considering future crypto investments.
According to OTPP CEO Jo Taylor, the fund conducted extensive due diligence on FTX before investing and is now avoiding the cryptocurrency industry after the investment failed. Taylor also stated that OTPP did not receive all the necessary information to make an informed decision.
Moreover, other Canadian pension funds, such as Caisse de dépôt et placement du Québec, also suffered losses in the crypto sector. The latter wrote off a $150 million investment in Celsius. Taylor acknowledged that OTPP has learned from the experience and regrets any losses experienced by members.
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Source: Cryptocurrency - investing.com
