Ontario Teacher’s Pension Plan Ditches Crypto Investments After $95M Loss

• OTPP avoids crypto industry after $95M loss in FTX; CEO emphasizes caution and member feedback.
• FTX investment by OTPP and other reputable investors indicated crypto’s growing acceptance.
• OTPP writes off FTX investment; founder faces fraud accusations; other Canadian pension funds suffer losses.

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,

We’re still working through what exactly happened there and you’re going to be careful.

…

The post Ontario Teacher’s Pension Plan Ditches Crypto Investments After $95M Loss appeared first on Coin Edition.