Quebec-based firm CDPQ had bet on troubled crypto-lender Celsius last year. Now its billion-dollar investment hangs in the balance.
- CDPQ, Canada’s second largest pension fund, had invested in Celsius.
- The CDPQ management company’s bet now hangs by a thread.
- Celsius filed for bankruptcy and has a deficit of more than $1 billion.
The Caisse de Dépôt et Placement du Québec (CDPQ), a Canadian investment firm that manages pension plans, could be losing a billion-dollar sum due to the beleaguered cryptocurrency platform, Celsius .
According to reports, the pension manager had participated in a financing round of Celsius in October 2021, in which the digital asset-based lending company had raised a sum of USD $400 million. The round had been co-led by the private equity equity is the funds that would be returned to a company's shareholders if all of the company's assets were dissolved and all debts were paid off in the event of liquidation. firm, WestCap Investment Partners LLC .
CDPQ’s billion-dollar bet, the figure for which had not been disclosed until this week, could now hang in the balance. The Quebec-based firm broke its silence on its relationship with the troubled crypto-lender on Wednesday, after admit to Bloomberg that their investment had not worked out as expected.
It is worth noting that Fund is the second largest pension fund in Canada. According to Bloomberg manages about $326 billion for pensions and other government funds in Quebec.
Reversal of Fund en Celsius is in danger
Según el reportaje, Fund confirmed that it had invested USD $150 million in Celsius as he had development previously an investigation of Radio-Canada. The shareholders are likely to be wiped out after the firm filed for Chapter 11 bankruptcy protection in a U.S. court, the release added.
As reported by DiarioBitcoin , Celsius and several of its subsidiaries are declared bankruptcy last week, a month after it paused withdrawals from its platform a place to buy, sell and store cryptocurrency citing the “ extreme market an area or arena, online or offline, in which commercial dealings are conducted. conditions “. In his statement, Celsius added that he had a deficit of USD $1,190 million and held the custodial custodial cryptocurrency businesses are the ones that are in possession of their customers’ funds for the duration of the use of their services. service responsible, StakeHound for the loss.
“ We understand that our investment in Celsius raises a number of questions “said the spokesman for Fund Maxime Chagnon, in a press release to Bloomberg . “ It is something we take very seriously and we will comment further at the appropriate time. Celsius is currently immersed in a complex process that will take time to resolve. “ .
In the statement, the Canadian pension manager explained that a part of “ too little “of its global portfolio a collection of cryptocurrencies or crypto assets held by an investment company, hedge fund, financial institution or individual. is invested in new technologies. Although he did not specify the percentage, he said that group includes “ innovative, high-growth companies in riskier sectors “that offer customers a “ superior performance “.
Fund added that while these gambles have provided a “ outperformance “institutional investors in the past, that had not been the case with Celsius . “Some of our investments, such as Celsius, are not performing as expected. “ the company admitted.
Crypto companies in trouble due to the downturn
Without providing too many details, Changon said CDPQ is “ doing everything possible”. to preserve their rights as shareholders of the platform.
It is worth noting that last year’s funding raised the valuation of Celsius to $3 billion. At the time, the chief technology officer of Fund Alexandre Synnett, had qualified Celsius como “ the world’s leading cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. lender, with a strong management team that puts transparency and customer protection at the heart of its operations “.
As you have been covering DiarioBitcoin , Celsius is one of the cryptocurrency companies that has faced financial difficulties in the face of the current price slump in the market. In addition to the lender, the fundThree Arrows Capital capital is most commonly defined as the large sum of money you would use to invest. (3AC) and the firm Voyager Digital digital technologies are these electronic tools that have the ability to generate, store or even process data. también se han declarado recientemente en bancarrota debido a problemas de insolvencia.
Meanwhile, a handful of trading platforms have paused withdrawals as a way to address a place where cryptocurrency can be sent to and from, in the form of a string of letters and numbers. their liquidity how easily a cryptocurrency can be bought and sold without impacting the overall market price. difficulties; they include CoinLoan ,Babel Finance, CoinFLEX y más recientemente Zipmex have taken these measures.
- U.S. regulators investigate Celsius, state of Vermont says it is “deeply insolvent”
- Coinbase is an American company that operates a cryptocurrency exchange platform. addresses insolvency rumors, says it has no exposure to Celsius, 3AC and Voyager
- Three Arrows Capital founders reportedly bought $50 million yacht with borrowed money
Article by Hannah Estefania Perez / DiarioBitcoin
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