Major Canadian pension fund embroiled in Celsius soap opera

Last Updated: 12 August 2022

Canada’s second-largest pension fund may be in for a big investment in a bitcoin company. The Caisse de dépôt et placement du Québec (CDPQ) invested $150 million in Celsius.

Billions of dollars have been invested in companies in the industry in recent years. The still young market offers no certainties as this became very clear, especially in the case of Celsius. The company went out of business after a combination of a declining market and questionable revenue models.

Celsius (and investors like CDPQ) are engaged in a likely lengthy liquidation process. There is a large list of creditors with all different interests. The Canadian pension fund will soon publish a half-yearly report. Then it will become clear what the financial consequences are of the collapse of Celsius.

The investment is (fortunately) only a fraction of the total assets of Caisse de dépôt et placement du Québec. They have hundreds of billions of dollars worth of assets under management.

According to reports, Celsius has $5.5 billion (!) in outstanding debts to numerous creditors.

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The large sum of money means that the local Canadian authorities are also going to have to look into Celsius. Québec Autorité des marchés financiers (AMF) and the Ontario Securities Commission (OSC) are jointly investigating the matter.

Besides the Canadian fund, all business relationships with other Canadians are under scrutiny. For example, they want to know how many people in their region used the lending platform.

Author

  • Ivan came across the topic of cryptocurrencies in early 2016 and, as an author and enthusiast, has been intensively involved with the topics of cryptocurrencies, blockchain and STOs ever since.

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