Ontario Teachers Fund sank $95 million into failed FTX empire

Ontario Teachers Fund sank $95 million into failed FTX empire

In Ontario, a teachers' pension fund is taking a hit in the current crypto crisis following significant investments in FTX last year.

The Ontario Teachers' Pension Plan Board, which oversees the fund, said there is about $95 million tied up in Sam Bankman-Fried's once-impressive empire Financial Post.

That empire has now collapsed after a series of scandals, including those involving FTX mixed User assets with sister trading company Alameda Research. The unit's balance sheet was heavily weighted towards FTX's native token, FTT, which plunged 85% in the three days.

Ontario Teachers first invested $75 million in 2021 in Bahamas-based FTX and FTX.US through its venture arm Teachers' Venture Growth (TVG), which was reportedly founded two years earlier to put money into emerging tech companies.

Another $20 million was distributed to FTX.US in January this year. While crypto prices then retreated from the all-time highs reached months earlier, the external appearance of the market predicted relative stability and growth.

It is not clear what the Fund's realized losses are at this point. A spokesman did not immediately respond to a request for comment.

Olivia Steedman, head of TVG, had previously justified the investments as a bet on crypto infrastructure as opposed to a single cryptocurrency, believing the industry forecast long-term growth, according to the Financial Post.

The fund's FTX exposure represents about 0.05% of its total assets and the potential collapse of FTX would have limited impact, the board said in the report. The board manages more than 242 billion Canadian dollars ($182 billion) in net assets on behalf of school teachers in Ontario.

Local teacher Darren Kleine, who has no money tied directly to the fund, told Blockworks he expected some teachers would be angry that the pension was exposed to such a "volatile sector" of the market.

According to the structure of the fund, teachers must contribute to the plan that is adjusted Dollar for dollar from the Government of Ontario and participating employers.

Although nothing has been announced, teacher contribution requirements have increased during previous periods of high volatility to help the fund offset losses.

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The post Ontario Teachers Fund Sank $95M in Failed FTX Empire is not financial advice.