The Caisse de depot et placement du Quebec (CDPQ) came out of its silence about its investment in Celsius Network by acknowledging that this investment had not offered the “published results”. However, it is impossible to know how the institution was able to conclude that it was reasonable to inject around 200 million into the cryptobank.
Posted at 11:37 a.m.
“We understand that investment raises several questions, underlined the woolen stocking of Quebecers, Wednesday, in a declaration. We take the file very seriously and we comment more on it at the appropriate time. »
The manager of public and parapublic pension and insurance plans has not yet specified his due diligence prompted him to lay down millions – a sum that could well fly away – in a company that has collapsed in the continuation of the plunge in the price of cryptocurrencies.
Celsius Network, which was touted as a “world-class company” by the CDPQ last October, is currently under US bankruptcy protection in the wake of a liquidity crisis. The process takes a “certain time” before knowing its outcome, affirming the institution.
“Each transaction, even of relatively small size, is the subject of an exhaustive analysis within a rigorous process by our teams”, argued the Caisse, without specifying how a company succeeded in the fine-tooth comb before investing.
The net assets of the CDPQ amounted to 420 billion as of December 31 last.
Under pressure, Celsius Network had frozen the withdrawals of its 1.7 million depositors on June 12. She appealed bankruptcy law on Wednesday, which means depositors could lose big. When it filed for bankruptcy, there was a $1.9 billion hole in its finances, according to documents presented in New York courts.
Cryptobanks like the CDPQ partner pool cryptocurrency deposits – like bitcoin – to then offer loans and interest that make up the 10%. These platforms are not regulated and depositors’ assets are not protected.