Celsius Network, a cryptocurrency interest and lending platform in which Caisse de depot has a large investment, announced that it was freezing withdrawals and transfers for its 1.7 million customers.
The company cited “extreme conditions” in the cryptocurrency market to justify its decision, in a blog post published on Sunday. “We are taking this decision to put Celsius in a better position to honor its obligations over the long term. »
By Monday morning, the value of bitcoin, the most widely used cryptocurrency, fell 18.58% to US$22,799.90.
Last October, the Caisse de depot et placement du Québec (CDPQ) and its partner WestCap announced an investment of US$400 million in the American company.
The investment has come under fire as Celsius Network comes under fire from US securities regulators, who are investigating the industry to find out whether platforms, like Celsius’s, should be regulated by the Securities and Exchange Commission ( DRY).
In a parliamentary committee in May, the president and CEO of the Autorité des marchés financiers (AMF), Louis Morisset, said that the Quebec stock market watchdog was collaborating in the SEC investigation.
“We continue to first understand what they are doing. […] It may be that what they are doing at the moment would not comply with the regulations in force. They issue real estate securities, they distribute securities,” he said.
It was not possible to have an immediate reaction from the Caisse de dépôt.