Even though $95 million was invested by the Ontario Teachers Pension Plan in FTX Trading and FTX US, it said that the impact on the plan will be ‘limited’.
The organization issued a statement on the matter and said that the investment was about 0.05% of its net assets.
This is not the first time that a pension fund from Canada has invested in a crypto firm that later went bankrupt.
One of the biggest pension managers in Canada, CDPQ said in August that it had written off an investment worth $150 million in crypto lender Celsius Network which also filed for bankruptcy this year.
There are a number of other pension funds that also have exposure to a bankrupt crypto company after the Chapter 11 bankruptcy filing by FTX on Friday morning.
Almost 130 affiliated companies will be filing for bankruptcy with FTX, which include its American subsidiary FTX.US and its sister entity, Alameda Research.
A report disclosed that a pension fund worth $70 billion named the Alaska Permanent Fund Corp and a pension fund for public employees worth $144 million named the Washington State Investment Board also have crypto exposure.
These two pension funds have the Global Growth Fund III of Sequoia Capital in their portfolios. The assets under management (AUM) at Sequoia are valued at $85 million.
The asset manager tweeted on Wednesday that it had ‘limited’ FTX exposure. It said that its investment in FTX.US and FTX.com was about $150 million.
However, it added that it had managed to make realized and unrealized gains of about $7.5 billion and this offset its investment, which means they were in good shape.
The firm also disclosed that approximately $63.5 million had also been invested by its SGCE Fund in FTX US and FTX.com, but this was just about 1% of the portfolio of the fund.
Friday afternoon saw many users struggling to withdraw their funds from the FTX exchange. On Thursday afternoon, some withdrawals had been allowed to go through.
But, these had just been restricted to those in the Bahamas. It said that it was complying with the regulators and allowing Bahamian funds to be withdrawn.
The entire fiasco had been kicked off a week prior when leaked documents showed that the $14 billion balance sheet of Alameda Research comprised $5 billion worth of FTT tokens.
This is the native token of the FTX exchange and the documents only confirmed what people had long suspected; Sam Bankman-Fried’s firms were more intertwined than he had admitted.
This revelation resulted in a massive sell-off of the FTT token and resulted in a liquidity crisis for the FTX exchange, prompting it to reach out to a competitor and ex-investor Binance for assistance.
Binance agreed to acquire FTX, but pulled out of the deal a day later. Bankman-Fried promised that they would find a way out, but signed the paperwork for bankruptcy on the same day.