Canadian pension fund giant Caisse de dépôt et placement du Québec (CDPQ) has written off its investment in struggling cryptocurrency lending firm Celsius, acknowledging that the company entered the burgeoning sector “too soon.”
Speaking at a news conference in Montreal on Wednesday (August 17, 2022), CDPQ CEO Charles Emond said that the pension fund invested early into the cryptocurrency industry, which he said is “in transition.”
The CEO, meanwhile, noted that the fund employed due diligence and caution before betting on crypto. According to a statement from Emond:
“The due diligence was quite extensive with many experts and consultants involved. The team came in cautiously. We had a 4% equity stake. The conversations we had internally were pretty straightforward. The teams are accountable for that.”
Emond’s comments come nearly one year after the pension fund’s investment in Celsius. In October 2021, CDPQ and growth equity firm WestCap, injected $400 million into the crypto lending platform, with CDPQ’s share being $150 million.
However, in July 2022, Celsius filed for Chapter 11 bankruptcy protection in the United States after pausing withdrawals in June. Meanwhile, Emond said that the company is weighing its “legal options.”
Featured Image Courtesy of Reuters
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