- The Canadian pension fund, Caisse de depot et placement du Quebec (CDPQ) has written off its investment in the crypto lending firm Celsius.
- According to Edmond, CDPQ entered into the crypto industry too soon.
- Edmund revealed that the company is taking the situation seriously and might even be considering going through with legal action against Celsius.
The Canadian pension fund, Caisse de depot et placement du Quebec (CDPQ) has written off its investment in the crypto lending firm Celsius. The pension fund is now questioning whether entering the crypto market was the right idea.
The CEO of CDPQ, Charles Edmond, acknowledged this fact when he spoke at a news conference in Montreal on Wednesday, August 17. According to Edmond, CDPQ entered into the crypto industry too soon.
The CEO also mentioned that despite entering into the market prematurely, CDPQ still employed due diligence and caution when it came to betting on crypto.
According to Edmund, the due diligence was quite extensive with many experts and consultants involved. “The team came in cautiously. We had a 4% equity stake.” He added that the conversations they had internally were pretty straightforward. “The teams are accountable for that”.
The CEO’s comments came almost one year after the pension fund decided to invest in Celsius. In October of 2021, CDPQ and the growth equity firm WestCap, decided to invest $400 million into Celsius, the crypto lending platform. CDPQ’s share in this investment constituted about $150 million.
Unfortunately, things went south for the investment. Celsius filed for Chapter 11 bankruptcy protection in the United States in July of 2022 after pausing withdrawals in June.
In addition to his earlier comments at the conference in Montreal, Edmund revealed that the company is taking the situation seriously and might even be considering going through with legal action against Celsius.
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