Nine months after having injected nearly 200 million CAN into Celsius Network by qualifying it as a world-class company, the Caisse de depot et placement du Québec (CDPQ) sees the controversial cryptobank sheltering itself from its creditors.
Posted at 9:01 p.m.
After freezing the withdrawals and transfers of its 1.7 million customers due to what was perceived as a liquidity crisis caused by the collapse of the price of cryptocurrencies, the woolen stocking partner of Quebecers confirmed, Wednesday evening, having turned to Chapter 11 US bankruptcy law in hopes of restructuring.
“This is the right decision for our community and our business,” Celsius Network CEO Alex Mashinsky said in a statement.
Platforms like Celsius Network pool cryptocurrency deposits. They offer loans and interest, often above 10%, to depositors, which is much higher than what traditional banks offer. These platforms are not regulated and depositors’ assets are not protected.
When questioned, the CDPQ was stingy with comments. The pension fund manager still hasn’t specified the due diligence process that prompted it to invest in Celsius Network.
“We are following the file closely and reviewing the documentation presented by Celsius,” said Caisse spokesperson Kate Monfette. We are unable to comment further at this time. »
At the same time, the cryptobank is targeted by a lawsuit from a former business partner, who accuses it of having orchestrated a Ponzi scheme and manipulated cryptoassets, in particular.
Celsius Network isn’t the only platform struggling to survive. Voyager Digital also protected itself from its creditors, while Three Arrows Capital was placed in insolvency proceedings.