Ontario educators plunge $95m into FTX – pension fund says collapse will have ‘limited impact’

The Ontario Teachers’ Retirement Plan says $95 million invested in FTX Trading and FTX US will have a “limited impact” on the plan.

The organization said yesterday that the investment represents 0.05% of its total net assets a permit.

If a Canadian pension fund investing in a bankrupt crypto company sounds familiar, it’s because it’s happened before. In August, CDPQ – one of Canada’s largest pension managers – announced its delisting 150 million dollars The Celsius Network for Bankruptcy Lending.

There are other large pension funds indirectly exposed to a bankrupt crypto company after FTX Chapter 11 bankruptcy protection application On Friday morning. The company’s algorithm trading sister company, Alameda Research, its US subsidiary FTX.US and approximately 130 affiliates will file for bankruptcy.

Alaska Permanent Fund Corp. , (a $70 billion pension fund for residents) and the Washington State Investment Board (a $144 billion pension fund for public employees) both have Sequoia Capital’s third global growth fund in their portfolios, according to a report from Pensions and Investments.

Sequoia, which manages $85 billion in assets, shared a letter Wednesday night on Twitter He describes her exposure to FTX as “limited”. The asset manager said he invested $150 million in FTX.com and FTX US, but was offset by about $7.5 billion in realized and unrealized gains — “so the fund remains in good shape,” he said.

The company also noted that the SCGE Fund invested $63.5 million in FTX.com and FTX US, representing less than 1% of the fund’s portfolio.

As of Friday afternoon, users have been struggling to find ways to Get their money from the stock market. FTX allowed some withdrawals Thursday afternoon, but was limited to Bahamians.

“In the regulatory and supervisory authorities at our headquarters in the Bahamas, we have begun to facilitate the withdrawal of Bahamian funds,” the company said. “As such, you may have seen some withdrawals processed by FTX lately where we have complied with regulators.”

The FTX problem began last week after leaked documents revealed that at least $5 billion of Alameda Research’s $14 billion balance sheet was FTT, a token issued by FTX. These documents confirmed long-standing suspicions that Sam Bankman-Fried’s business was more intertwined than publicly allowed.

This revelation led to a massive selloff of FTT and created a liquidity crunch for FTX severe enough to seek help from rival company and former investor Binance.

Binance said it would acquire FTX in a non-binding agreement, then backed out of the deal the next day. FTX CEO Sam Bankman-Fried offered a lengthy apology and promised that the team would spend the week trying to find cash, but signed the bankruptcy papers on the same day.

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