{"id":48174,"date":"2023-04-21T08:20:58","date_gmt":"2023-04-21T12:20:58","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=48174"},"modified":"2023-04-21T08:21:01","modified_gmt":"2023-04-21T12:21:01","slug":"otpp-writes-off-95-million-crypto-investment-after-ftx-collapse","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/otpp-writes-off-95-million-crypto-investment-after-ftx-collapse\/","title":{"rendered":"OTPP writes off $95 million crypto investment after FTX collapse"},"content":{"rendered":"\n

OTPP has written off\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> its $95 million investment in FTX, a crypto exchange that went bankrupt amid fraud allegations and a liquidity crisis.\u00a0<\/p>\n\n\n\n
\"OTPP<\/figure>\n\n\n\n

The fund said it invested $95 million in FTX<\/use><\/svg><\/span><\/a> through its Teachers\u2019 Venture Growth platform, representing less than 0.05% of its net assets. <\/p>\n\n\n\n

The Ontario Teachers Pension Plan\u00a0(OTPP) was among the prominent investors that backed FTX, which was founded by Sam Bankman-Fried<\/a>, a 30-year-old billionaire who was dubbed the \u2018King of Crypto.\u2019 <\/p>\n\n\n\n

After CoinDesk discovered that Alameda Research, a trading firm controlled by Bankman-Fried, had a lot of FTT, FTX's fortunes turned sour.<\/p>\n\n\n\n

The report triggered a sell-off of FTT by Binance<\/a>, another crypto exchange and a former investor in FTX, causing the token\u2019s price to plummet and sparking a wave of withdrawals from FTX. <\/p>\n\n\n\n

The exchange filed for US Chapter 11 bankruptcy on November 11, 2022, unable to satisfy its obligations.Bankman-Fried resigned as FTX CEO and is facing fraud charges. <\/p>\n\n\n\n

OTPP wrote off its entire stake in FTX following the exchange\u2019s collapse. <\/p>\n\n\n\n

Jo Taylor, CEO of OTPP, told the Financial Times<\/a>: <\/h5>\n\n\n\n
\n

\u201cWe\u2019re still working through what happened there, and you\u2019re going to be careful. It'd be unwise for us to rush.\u201d <\/em><\/p>\n<\/blockquote>\n\n\n\n

This is not the first time a major Canadian pension fund has been caught up in a crypto-related debacle. <\/p>\n\n\n\n

Caisse de Depot et Placement du Qu\u00e9bec, which has over $300 billion in AUM<\/a>, wrote off its entire $150 million stake in failing cryptocurrency lender Celsius Network in August 2022. <\/p>\n\n\n\n

\u201cWe took our time and did a lot of due diligence on the business.” It didn\u2019t turn out the way we thought,\u201d <\/em>said Taylor. <\/p>\n\n\n\n

As central banks struggle to regulate inflation and interest rates, the fund is now cautiously exploring for real estate opportunities.<\/p>\n","protected":false},"excerpt":{"rendered":"

OTPP has written off its $95 million investment in FTX, a crypto exchange that went bankrupt amid fraud allegations and a liquidity crisis.\u00a0 The fund said it invested $95 million in FTX through its Teachers\u2019 Venture Growth platform, representing less than 0.05% of its net assets. The Ontario Teachers Pension Plan\u00a0(OTPP) was among the prominent […]<\/p>\n","protected":false},"author":44,"featured_media":48181,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[26],"tags":[376,778,14224],"class_list":["post-48174","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrencies","tag-cryptocurrencies","tag-ftx","tag-otpp"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/04\/OTPP.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/48174","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=48174"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/48174\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/48181"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=48174"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=48174"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=48174"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}