The financial industry is still feeling the effects of the collapse of Celsius.
Nine months before Celsius filed for Chapter 11 bankruptcy, the Caisse de Dépôt, Canada’s second-largest pension and insurance fund, invested $150 million in the company. The fund could now end up with nothing.
The Caisse de Dépôt was one of two lead investors in Celsius’ $400 million Series B investment round back in October 2021, a round that saw the cryptocurrency lender surpass a $3 billion value. The Caisse de Dépôt had net assets of $419.8 billion at the end of 2021.
“We take this matter extremely seriously, and we will offer more commentary as soon as it is appropriate. Celsius is presently involved in a difficult process that will take time to finish,” a Caisse official told Bloomberg in July.
This month, the pension fund is anticipated to release its mid-year report, indicating the scope of the harm.
Caisse praised the bitcoin lender at the time of the investment, calling them a “leading worldwide cryptocurrency earning and borrowing platform.”
According to the source,
“expanding [Celsius’] capabilities and solutions, connecting traditional financial markets with those of the cryptocurrencies” will be accomplished with the investment.”
Regulators consult each other as Celsius collapses
Since the crypto lender’s collapse in July, the Canadian pension fund is probably less appreciative of it.
With a debt to creditors and customers of over $5.5 billion, Celsius’ tragic end in July of this year had devastating financial repercussions throughout the cryptocurrency and related industries.
According to The Financial Post, the U.S. Securities and Exchange Commission (SEC) and the Québec Autorité des marchés financiers (AMF) have started a joint investigation to look into the economic effects of the Celsius bankruptcy case in their respective jurisdictions due to the size of the pension fund at issue.
The number of users in the AMFs and OSC’s respective regions who used the lending platform and suffered financial losses is of particular relevance to them.