Ontario Teacher's Pension Plan accepts their loss

[Zilon]

One of the largest Pension plans in the world situated at Canada the Ontario Teachers' Pension plans has written off the total Investment the have pilled up in the collapsed/bankrupt FTX exchange in their report the suggested it will be treated as potential fraud

The pension giants writes off $95 million invested in the bankrupt crypto exchange but expresses their complete disappointment after the  affected exchange filled for bankruptcy protection. Their total worth in asset under management (AUM) is over $250 million. The financial loss from the investment will have little or no effect on the plan as reported by the Ontario Teachers'

"The financial loss from this investment will have limited impact on the Plan, given its size relative to our total net assets and our strong financial position," said Ontario Teachers'. "However, we are disappointed with the outcome of this investment, take all losses seriously and will use this experience to further strengthen our approach."

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This is not the first time large large Canadian Pension plan got affected by crypto-related issues.

This isn't the first time a large Canadian pension fund got caught up in the crypto-related contagion. This past August, Caisse de Depot et Placement du Quebec – with more than $300 billion in AUM – wrote down its entire $150 million investment in failed crypto lender Celsius Network.

If there were no reserve funds from Ontario it would have been a lost investment for this retirees and there are other hidden stories of start-up pension plans that invested in crypto through various networks and got either scammed or lost their investment for various reasons. I wish there will be good sensitisation for the aged on how best to save their investment to avoid being a victim of future exchange crash, because this might have some negative image about Bitcoin when brought up to the victims of this plans

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[Hydrogen]

This issue isn't exclusive to the crypto industry. 401ks and pension plans have been battered by stock losses over the last two years. Even Warren Buffett could be losing money with his current stock investments in known trades. Such as his recent selling of wells fargo to buy citigroup stock.

Inflation also is not having positive effects on retirement and pension plans, despite assurances that it would only be temporary and transitory in nature.

It is not only pension plans on the crypto side which are taking a beating. Its happening everywhere. Everyone's pension and retirement plans are being demolished whether they're denominated in fiat or crypto.

I don't think anyone would argue that the FTX situation is very strange. The number of exchange hacks in 2022 is very strange.

When crypto was first introduced into the finance world there was something called cold wallets which were used to prevent these types of hacks. If we want a legitimate discussion we can pose a question of why crypto finance which was founded upon principles of reliability and durability drifted away from the use of cold wallets as a standard protocol.

[larry_vw_1955]

One of the largest Pension plans in the world situated at Canada the Ontario Teachers' Pension plans has written off the total Investment the have pilled up in the collapsed/bankrupt FTX exchange in their report the suggested it will be treated as potential fraud

imagine investing huge amounts of money into something you dont even understand.

[bittraffic]

I don't think anyone would argue that the FTX situation is very strange. The number of exchange hacks in 2022 is very strange.

Strange enough to wear the tinfoil hat.
One would believe the FTX or Celsius collapse was all planned and it's definitely a cruel plan that even the aged, who couldn't any more work thier way will suffer, wasn't spared.

One of the largest Pension plans in the world situated at Canada the Ontario Teachers' Pension plans has written off the total Investment the have pilled up in the collapsed/bankrupt FTX exchange in their report the suggested it will be treated as potential fraud

imagine investing huge amounts of money into something you dont even understand.

That's also true. But they were persuaded to invest because they see less risk upon seeing a lot of reputable people and celebrity promotion.

[bitmover]

When crypto was first introduced into the finance world there was something called cold wallets which were used to prevent these types of hacks. If we want a legitimate discussion we can pose a question of why crypto finance which was founded upon principles of reliability and durability drifted away from the use of cold wallets as a standard protocol.

I believe the main reason for this is that investors are not satisfied with bitcoin gains. "Crypto" became much more than holding bitcoin in a hardware wallet.

Those funds and even small investors prefer to buy exchange tokens like FTT and BNB. Or even worse, they put their bitcoins and tokens in an exchange wallet to get 4% APR.

Sometimes those exchange go bankrupt, and their bitcoins and crypto are gone for good, for such thing as little a 4% APR.

[jackg]

imagine investing huge amounts of money into something you dont even understand.

I know a lot of people that have studied finance that seem to be bad at managing their own - it's probably the same for their companies too and further into a wider scope of the sector.

I think a lot of pension schemes are insured against losses or use fancy derivatives to make more money out of risky investments than they'd lose by not doing (but this might be my clearly skeptical view of the sector - big companies are hard to run efficiently).

I think the same also happens with a lot of startups getting investments from pensions schemes. If a company is forecast to go from a valuation of $40bn to $200bn, there's going to be some level of risk investing in it - that's pretty obvious.

[wxa7115]

When crypto was first introduced into the finance world there was something called cold wallets which were used to prevent these types of hacks. If we want a legitimate discussion we can pose a question of why crypto finance which was founded upon principles of reliability and durability drifted away from the use of cold wallets as a standard protocol.

I believe the main reason for this is that investors are not satisfied with bitcoin gains. "Crypto" became much more than holding bitcoin in a hardware wallet.

Those funds and even small investors prefer to buy exchange tokens like FTT and BNB. Or even worse, they put their bitcoins and tokens in an exchange wallet to get 4% APR.

Sometimes those exchange go bankrupt, and their bitcoins and crypto are gone for good, for such thing as little a 4% APR.

That is the case with a great deal of the newcomers we see in the market, they want to obtain the same profits the early adopters got, invest a few dollars and obtain millions of dollars months later.

So for them it is not really an option to just buy some bitcoin and store it safely in a hardware wallet, unfortunately this behavior exposes them to all kind of scams which they are not prepared to face, then they decide to make investments which may seem safe but that we know are full of danger, like investing in exchange tokens.

[larry_vw_1955]

imagine investing huge amounts of money into something you dont even understand.

I know a lot of people that have studied finance that seem to be bad at managing their own

that's probably because they think they know it all.

That's also true. But they were persuaded to invest because they see less risk upon seeing a lot of reputable people and celebrity promotion.

and now hopefully they know that's not a guarantee of future success.

but i do kind of feel sorry for people that lost money because some youtuber was pimping out their channel for one of these scams to promote their interest earnings. and people believed them and based on their trust for the youtuber who was getting paid bank for talking about the company put their 401k money in.

[avikz]

I believe American pension fund 401K (or something similar) had also invested into bitcoin. Not sure which exchange they have used but I remember expressing my disappointment after reading the news! Even though I have myself invested heavily on bitcoin, I strongly believe that such a volatile asset must not be used for any kind of retirement funds. Unless that retirement fund is extremely agile and knows how to get out of a market in a second's notice. Bitcoin and crypto market is good for young lads who has time in hand. Bitcoin can offer a great return but it can also offer super disappointment just like what happened to this one!

I completely understand that the loss is happening due to the collapse of an exchange but even crypto market offers same kind of risk. Unless someone can get out of the market at the right time and re-enter again at optimum low, it makes no sense to have crypto as an investment. It's the most riskiest asset in the world!

[NeuroticFish]

I believe the main reason for this is that investors are not satisfied with bitcoin gains. "Crypto" became much more than holding bitcoin in a hardware wallet.

Those funds and even small investors prefer to buy exchange tokens like FTT and BNB. Or even worse, they put their bitcoins and tokens in an exchange wallet to get 4% APR.

Sometimes those exchange go bankrupt, and their bitcoins and crypto are gone for good, for such thing as little a 4% APR.

Imho it's not that they're not satisfied with BTC gains. It's that they were expected to show gains every month, every year. And there are years BTC price is going downwards. Even more, lately stocks and gold also didn't look good afaik. And then what else can get the numbers up? Shitcoins and derived businesses, yay! I guess that most of those investors failed to gasp that shitcoins are significantly more risky than bitcoin (I expect they were taught the stocks are risky and bitcoin is already off their chart).
So I see it just as a simple and direct result of the pressure on getting positive results continuously and the current economic state.

[LoyceMobile]

Instead of investing in exchanges, they should have invested in Bitcoin directly. Pension funds are in it for the long run, which fits Bitcoin's long term potential.

[noorman0]

-snip-
This is not the first time large large Canadian Pension plan got affected by crypto-related issues.

It seems their previous case with Celsius didn't make much of the news.

-snip-
 I wish there will be good sensitisation for the aged on how best to save their investment to avoid being a victim of future exchange crash, because this might have some negative image about Bitcoin when brought up to the victims of this plans

They believe it's because it's sponsored by the government, no idea how that would mean, Lol. Going by the company's brand, I hope they have a lot of backup plans, given the involvement of the Ontario government I think they have quite strong backers.

[jossiel]

They've already accepted their loss and that means that there's no way for them to recover whatever is the amount that has been lost to them.

So sad that many of them, instead of enjoying their money, it is the other person that has enjoyed with their money. This is going to lose them credibility and they should make a plan if ever they'll still going to believe into investing directly into exchanges rather than buying bitcoin alone for which is the better thing to do.

[Lucius]

It's easy to gamble with other people's money, and it's even easier to pretend that nothing happened after that. I don't know what the options are for those who are the users of these funds, but I personally would not give them a single cent to manage because they have shown that they are incredibly incompetent, and they certainly have other ill-considered investments that will not be in the public's focus when they experience their downfall.

The pension giants writes off $95 million invested in the bankrupt crypto exchange but expresses their complete disappointment after the  affected exchange filled for bankruptcy protection. Their total worth in asset under management (AUM) is over $250 million. The financial loss from the investment will have little or no effect on the plan as reported by the Ontario Teachers'

I would disagree that a loss of $95 million would not be significant if the total assets were only $250 million, but it is still $250 billion. In other words, they have so much money that such failures mean almost nothing to them.

[Zlantann]

One of the largest Pension plans in the world situated at Canada the Ontario Teachers' Pension plans has written off the total Investment the have pilled up in the collapsed/bankrupt FTX exchange in their report the suggested it will be treated as potential fraud

All forms of investment have their level of risk attached to them. It was a very smart move to invest in cryptocurrency and it might have been profitable if not for the fall of FTX. These investors had confidence in the crypto business and it is very disappointing that they lost their funds. This news is not a good one and it has the tendency of discouraging people from investing. In recent times almost all the sectors of the economy are looking unprofitable but I think the crypto space is very risky for pension investment.  

The pension giants writes off $95 million invested in the bankrupt crypto exchange but expresses their complete disappointment after the  affected exchange filled for bankruptcy protection. Their total worth in asset under management (AUM) is over $250 million. The financial loss from the investment will have little or no effect on the plan as reported by the Ontario Teachers'

They are claiming it will have minimal effect because they want to the build confidence and trust of the pensioners because most of them might have health issues if they know that their life savings or entitlement is in danger.

[TheGreatPython]

They've already accepted their loss and that means that there's no way for them to recover whatever is the amount that has been lost to them.

So sad that many of them, instead of enjoying their money, it is the other person that has enjoyed with their money. This is going to lose them credibility and they should make a plan if ever they'll still going to believe into investing directly into exchanges rather than buying bitcoin alone for which is the better thing to do.

They lost big but have accepted defeat very easily while those who lost small are seem to not give up until now. They are still hoping that they can get something. This is the risk of investing money in a centralized entity. There is a possibility that they will use your money.

I think some investors already know this fact but they still insisted because for them, they are still being paid by interest and their money still grows over time. It is said that this wasn't the first time ontario teachers pension plan losses their money. That's very unfortunate. I think after this, they will not do the same thing anymore but they will choose other investments away from cryptos.

[coolcoinz]

Instead of investing in exchanges, they should have invested in Bitcoin directly. Pension funds are in it for the long run, which fits Bitcoin's long term potential.

Exactly!

I don't get how stupid you have to be as the fund manager to buy some shitcoin issued by a kid from the Bahamas and hold it on his platform.

-Here's my 100 million USD, hold on to it for me Sam from the Bahamas, and may you bring me wealth in a few years.

There were so many other ways to invest in real cryptocurrencies. If they for some reason despised bitcoin there's always Luna that's backed by real bitcoin and a Bitcoin future's ETF 
When will people finally learn that once you buy cryptocurrency and I'm talking about real crypto? Not an exchange token or a coin that has value because some kid says it has, see Do Kown, SBF and many others. For instance Justin Sun is doing pretty much the same thing just hasn't gone bankrupt yet.

[jossiel]

They've already accepted their loss and that means that there's no way for them to recover whatever is the amount that has been lost to them.

So sad that many of them, instead of enjoying their money, it is the other person that has enjoyed with their money. This is going to lose them credibility and they should make a plan if ever they'll still going to believe into investing directly into exchanges rather than buying bitcoin alone for which is the better thing to do.

They lost big but have accepted defeat very easily while those who lost small are seem to not give up until now. They are still hoping that they can get something. This is the risk of investing money in a centralized entity. There is a possibility that they will use your money.

I think some investors already know this fact but they still insisted because for them, they are still being paid by interest and their money still grows over time. It is said that this wasn't the first time ontario teachers pension plan losses their money. That's very unfortunate. I think after this, they will not do the same thing anymore but they will choose other investments away from cryptos.

Not the first time?

Well, the problem is on the management is too investable in something that they shouldn't be. Too bad that they're experiencing this and with this downfall.

Too many pensioners are affected and I just feel bad about them that instead of them enjoying the pension that they should have, they just can't give it away because of this.

[darkangel11]

I believe American pension fund 401K (or something similar) had also invested into bitcoin. Not sure which exchange they have used but I remember expressing my disappointment after reading the news! Even though I have myself invested heavily on bitcoin, I strongly believe that such a volatile asset must not be used for any kind of retirement funds. Unless that retirement fund is extremely agile and knows how to get out of a market in a second's notice. Bitcoin and crypto market is good for young lads who has time in hand. Bitcoin can offer a great return but it can also offer super disappointment just like what happened to this one!

I completely understand that the loss is happening due to the collapse of an exchange but even crypto market offers same kind of risk. Unless someone can get out of the market at the right time and re-enter again at optimum low, it makes no sense to have crypto as an investment. It's the most riskiest asset in the world!

Bitcoin is not to blame here, the custody is.

You can buy bitcoin as a retirement fund and I even think it's a great idea as long as your exposure is limited. If the fund allocates less than 10% into BTC and then when the time comes to start paying people and bitcoin is still down they can use the other 90% to keep them covered and buy time for the other 10 to bring profit.
Pension funds that have a lot of time and can delay selling for another 10 years can be fine with such investment as long as they don't keep money on centralized platforms.

[Quidat]

They've already accepted their loss and that means that there's no way for them to recover whatever is the amount that has been lost to them.

So sad that many of them, instead of enjoying their money, it is the other person that has enjoyed with their money. This is going to lose them credibility and they should make a plan if ever they'll still going to believe into investing directly into exchanges rather than buying bitcoin alone for which is the better thing to do.

They lost big but have accepted defeat very easily while those who lost small are seem to not give up until now. They are still hoping that they can get something. This is the risk of investing money in a centralized entity. There is a possibility that they will use your money.

I think some investors already know this fact but they still insisted because for them, they are still being paid by interest and their money still grows over time. It is said that this wasn't the first time ontario teachers pension plan losses their money. That's very unfortunate. I think after this, they will not do the same thing anymore but they will choose other investments away from cryptos.

Not the first time?

Well, the problem is on the management is too investable in something that they shouldn't be. Too bad that they're experiencing this and with this downfall.

Too many pensioners are affected and I just feel bad about them that instead of them enjoying the pension that they should have, they just can't give it away because of this.

Arent they've been asked for some confirmation for those pension funds to be used up? Or simply they are the ones who do decide on jumping into that?
This is one of the big or huge risk which they shouldnt have make use of these pension funds or money to go all in because we know that exchanges could really be easily
be fucked up and been involved on such issues and conditions which to those who had trust up that much will really be having this huge risk.
It is really that sad that they had lost on those pension which its more worth if they hadnt just decided up that way.