Missouri State Pension System Loses Money Due to FTX Bankruptcy ” Missouri

The Missouri State Employee Pension Scheme (MOSERS) lost an estimated $1 million as a result of its investment in FTX.

MOSERS administers disability benefits, insurance and pensions for most Missouri state employees. These include college staff, judges, and nationally elected officials.

Under its embattled CEO Sam Bankman-Fried, FTX grew to become the third-largest crypto exchange by volume with over 1 million users with an average trading volume of about $10 billion per day at its peak in 2021. The Bahamas-based cryptocurrency exchange filed for bankruptcy an shelter on November 11 due to a liquidity crisis forcing customers to exit the platform.

MOSERS chief investment officer TJ Carlson notified the pension system board of the loss on Friday, The Kansas City Star reported. The private equity firm in which the pension fund invested was identified as BlackRock, the New York-based asset management company.

A spokesman for MOSERS Candy Smith said in a Friday email to the outlet that the system was exposed to approximately $1.2 million in FTX at the time of the bankruptcy filing.

“This equates to approximately 0.01% of MOSERS’ total portfolio exposure, or approximately 1 basis point,” Smith said. MOSERS was worth $8.2 billion as of June 30.

Republican Senator from Missouri Josh Hawley on Friday sent a letter (pdf) to the heads of the Justice Department, the Securities and Exchange Commission and the US Commodities Future Trading Commission, urging the authorities to remove any documents between the authorities Biden To provide government and democratic groups with any correspondence regarding FTX or its sister company Alameda Research.

“The success of Mr. Bankman-Fried’s criminal enterprise made him one of the richest men in America,” wrote Hawley. “And he has put his ill-gotten gains at the service of the Democratic Party, which in recent years has grown to become its second-largest single donor behind only George Soros.”

Hawley, a member of the Senate Judiciary Committee, also wrote that Bankman-Fried allegedly withdrew customer deposits from FTX to offset losses at Alameda. This would be a violation of the exchange’s terms of service.

“Customers are now holding the bag,” wrote Hawley, who went on in his letter to accuse Bankman-Fried of “acts of fraud” and donating millions of dollars to the service of Democratic candidates, including President Joe Biden.

Other institutional investors with either direct or indirect exposure to FTX include Alaska Permanent Fund Corp. of $77.3 billion, the Washington State Investment Board of $182.3 billion and the Ontario Teachers’ Pension Plan of $182 billion.

Bradley Martin

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Bradley Martin is Executive Director of the Near East Center for Strategic Studies.

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