Ontario Teachers Pension Plan Lost $95 Million in FTX Failure

The Ontario Teachers Pension Plan learnt a lesson after losing $95 million in the FTX collapse.
The organization’s board members decided not to make any further crypto investments.

Ontario Teachers Pension Plan board members decided not to make any further cryptocurrency investment after losing the invested amount in FTX. The pension plan believes that investing in FTX gave them a lesson.

The pension fund was among the top financial backers of now-bankrupt FTX. The organization invested around $95 million in the cryptocurrency exchange started by Sam Bankman Fried (SBF). The unprecedented failure of FTX completely wiped out millions of dollars in investor funds.

While talking to the Financial Times, the Chief Executive Officer of the Pension organization said that the entity will refrain from digital assets investment due to the heavy losses incurred in the FTX collapse.

The pension organization invested the funds in two rounds, one in 2021 and the other in 2022, which collectively amounted to around $95 million. The investment was made during the crypto market bull run which was the time FTX was at its prime in its industry.

Although the funds lost by the pension organization were 0.05% of its total assets, the community faced criticism over its investment in FTX. SBF has been accused of fraudulent activities.

Dozens of victims including those who lost investments and entities allegedly accused SBF’s of embezzlement of customers’ assets and creating the mess.

Ontario Teachers Pension Plan is based in Toronto, Canada, and was founded in January 1990. As per Crunchbase data, Pension Plan has invested in over 95 companies globally and acquired over 32 organizations.

The pension plan’s most recent investment was in Westland Insurance Group. An undisclosed amount was invested and it became one of the leading investors of Westland.

Other than Westland, the Pension plan invested in Netskope, Nextera Energy, SSEN Transmission, Arctic Wolf, and Ruigu. Mitolo Family Farms, Sevana Bioenergy, GPA Global, Tower, Veonet, Vantage Elevator, and HomeEquity Bank are among the significant acquisitions of Ontario.

More than 3500 employees are working with the pension fund company which operates its investment business in more than 50 nations. The company has over 25 global offices including Hong Kong, Singapore, San Francisco, and Toronto.

The organization has over 330,00 teachers, including principals and school administrations, and pays over $2 billion to around 148,000 retired employees. As of March 2023, the net assets of Ontario pension plans are above $250 billion.

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing