The FTX cryptocurrency exchange problem has far-reaching effects. The third-largest pension fund in Canada is now disclosing information about its holdings in the struggling business run by 30-year-old crypto billionaire Sam Bankman-Fried.
The Ontario Teachers Pension Plan (OTPP) announced on Thursday that it has invested $75 million in FTX International and its American subsidiary, FTX.US, in October 2021. It added that in January of this year, it made a $20 million follow-up investment in FTX.US. Its prospective losses are still an unknowable quantity.
The fall of FTX didn’t just hurt the OTTP. One of the best-known venture capital firms, Sequoia Capital, said that it will write off its $214 million investment in FTX to zero. In a letter to investors, it stated, “We are in the business of taking risk.” Both positive and negative surprises can occur with investments.
BlackRock, SoftBank, and Singapore’s Temasek sovereign wealth fund are a few more illustrious backers of the platform.
Federal officials in the US are apparently looking into FTX right now to see if company mistreated customers or broke any financial laws.