The Caisse de depot et placement du Quebec (CDPQ), an institutional investor responsible for managing retirement assets in Canada’s French-speaking province of Quebec, wrote off almost the entire of its $200 million ($154.7 million) investment in cryptocurrency lender Celsius Network, as stated by Cointelegraph.
According to Cointelegraph, this development happened ten months after the CPDQ and growth equity firm WestCap made a $400 million collaborative investment into a Celsius, at a valuation of three billion dollars. During that time, Celsius had over 1,000 employees, total assets worth $25 billion and $850 million in cumulative interest paid to depositors. However, depositors’ assets are not protected when an unregulated and centralised body sustains losses, nor is the firm subjected to any form of restrictions on the use of leverage. At the beginning of this year’s cryptocurrency winter, the unanticipated crash of Bitcoin (BTC) and other digital assets left a $2.85 million gap in Celsius’ net assets, due to which withdrawals on the accounts of about $1,7 million customers was suspended.
Information reported by Cointelegraph said that the loss on Celsius is of representation of a certain part of the CPDQ’s portfolio. By June 30, the CPDQ was able to manage a sum total of $391.6 billion in total assets, or about $303.4 billion, which decreased by 7.9% in the past six months. Reportedly, the entity is in the middle of proceedings of evaluating its legal options against Celsius, although no details on the matter have been shared till now. On the basis of court filings, Celsius is expected to run out of funds by this October.
According to Celsius Network’s official website, it is a cryptocurrency company which is headquarted in Hoboken, New Jersey, and maintains offices in four countries. Users could deposit a range of digital assets, including Bitcoin and Ethereum.
(With insights from Cointelegraph)