The OTPP Exits Cryptocurrency Investment After $95M Loss on FTX.
The Canadian Teachers’ Pension Fund of Ontario (OTPP) has decided to abandon its cryptocurrency investment after incurring a loss of $95 million in the bankrupt cryptocurrency exchange FTX.
OTPP, Canada’s third-largest pension fund, invested CAD 75 million ($55 million) in FTX International and FTX.US last October and an additional CAD 20 million in FTX.US in January.
However, due to possible fraud at FTX, OTPP released a statement explaining that it fully supports the efforts of regulators and others to analyze the risks and causes of failure for this business.
As a result, the fund will reduce its investments in cryptocurrency to zero by the end of the year.
FTX’s new CEO, John Ray, announced a possible restart of the exchange in January to recoup the losses of creditors and customers.
However, according to the latest data, the trading platform owes about $11.6 billion to creditors, with only $2.8 billion recovered so far.
In April, FTX was reportedly considering using funds intended for customer payments to restart the company.
Lawyers have analyzed the possibilities of restoring the exchange and have studied the circumstances related to taxation.
They have also spoken with Ray about creating a mock exchange for user experience testing.