Investing in Centennial Network | CDPQ expects to lose 200 million

Ten months after entering the crypto sector, Caisse de Depot et placement du Québec (CDPQ) has written off nearly $200 million from its investment in the Celsius Network. The foundation recognizes that his arrival “was very early in this highly volatile sector”.

Posted at 11:00 a.m.

Julian Arsenault

Julian Arsenault

“For us, obviously, when we look at all of this, we’re arriving very early in a sector in transition,” Quebec Woolen Socks President and CEO Charles Emond acknowledged Wednesday, at the occasion of the semi-annual results presentation.

By offering a kind of mea culpa, he indicated that the foundation was assessing its “legal options,” without going into details, as Celsius Network has placed itself under the protection of US bankruptcy law.

Facing a liquidity crunch, the US crypto bank froze withdrawals from 1.7 million depositors on June 12. It resumed bankruptcy law last week, which means that depositors could lose a lot. When she filed for bankruptcy, there was a $1.9 billion hole in her finances, according to documents filed in New York courts.

Companies like Celsius deposits pooled from cryptocurrencies – such as Bitcoin – then offer loans and interest in excess of 10%. These platforms are unregulated and depositors’ assets are not protected.

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