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Pension fund loses $150 million on Celsius

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Cryptocurrency lending company Celsius continues to incur significant losses for its investors. This came shortly after the freezing of customer withdrawals and filing for bankruptcy during the cryptocurrency market crash.

Along these lines, a Canadian pension fund confessed that it also made an investment in the bankrupt cryptocurrency lender. As announced, Caisse de Depot et Placement du Quebec (CDPQ) invested $150 million in Celsius in October 2021. The investment was part of a $400 million funding round co-led by WestCap Investment.

According to a statement by CPDQ spokesman Maxime Chagnon, the pension fund does not yet have recovery plans.

“We understand that our investment in Celsius raises a number of questions. This is something we take very seriously and will provide further comment at the appropriate time,” he said.

Pension fund lost money

Reportedly, the CPDQ’s October contribution boosted Celsius’ valuation by more than $3 billion. Chagnon said his company was “making every effort to preserve his rights.” But the company did not provide further details on what will be done.

Thus the company ensured that only a small portion of the total value of the fund was involved in the operation. That said, he explained that a part of the fund’s portfolio was in fact committed to risky assets.

“A very small portion of our overall portfolio is in new technologies,” he said.

At the time of the investment, CPDQ’s technology director, Alexandre Synnett, referred to Celsius as an innovator. He had said that Celsius was the world’s leading cryptocurrency lender.

“With a strong management team that puts transparency and customer protection at the heart of its operations,” he said.

Celsius has received a class action lawsuit accusing it of selling unregistered securities in a Ponzi-like scheme.

Similarities between the cryptocurrency liquidity crisis and the 2008 crisis

All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

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