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

Last Updated:
Ontario Teacher Pension Plan
  • 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.

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.