FTX scams Ontario Teachers Pension out of $95 MILLION

Click here to read the full article.

The Ontario Teachers’ Pension Plan has lost $95 million in the FTX collapse after missing obvious red flags and despite years of diligently studying cryptocurrency investment.

In October 2021, Ontario Teachers’ put $75 million into two FTX entities in October and three months later invested a further $20 million in FTX.US. The entire investment will be written off as zero at the year-end.

As the investment represented less than 0.05% of the pension plan’s total net assets and equated to ownership of just 0.4% and 0.5% of FTX International and US respectively, the loss will have limited impact on the Plan, said Ontario Teachers’ in a statement.

But the loss has left many wondering how Ontario Teachers managed to miss the red flags, the most surprising of which, according to Bloomberg, is FTX’s lack of a proper board of directors given that Ontario Teachers is known for being diligent about scrutinizing the governance of companies it invests in.

“Prior to making an investment, our investment teams spent years tracking the digital asset space,” Dan Madge, a spokesperson for the plan, told Bloomberg. “TVG’s (Teachers’ Venture Growth) thesis was that exchanges, such as FTX, could help refine out perspectives around digital assets without exposing the plan to significant risks. TVG spent many months on diligence of FTX, in partnership with experienced external advisors, to allow us to assess the risks associated with the investment.”

Ontario Teachers’ said that while its investment departments “conduct robust due diligence on all private investments,” no process can “uncover all risks, especially in the context of an emerging technology business.”

Continue reading here.

Scroll down for comments and share your thoughts!


What do you think?

Leave a Reply

Your email address will not be published. Required fields are marked *

GIPHY App Key not set. Please check settings

Ice Cube turned down $9 MILLION rather than get Covid vaccine

RNC Attorneys That Surveyed Maricopa County Voting Sites Confirm Widespread Problems