Quebec pension manager Caisse de depot et placement du Québec (CDPQ) has written off its investment in now-bankrupt cryptocurrency lending company Celsius network, conceding that it was too soon to venture into the sector.
CDPQ CEO Charles Emond finally broke silence on his fund’s $150 million investment in the Celsius Network, which filed for Chapter 11 bankruptcy in July after suffering a sudden liquidity crisis amid a crash in crypto prices. “The due diligence was quite extensive with many experts and consultants involved. The team came in cautiously,” he said, as cited by Bloomberg. “We had a 4% equity stake. The conversations we had internally were pretty straightforward. The teams are accountable for that.”
The pension manager reported a 7.9% loss in the first half of 2022, while its benchmark portfolio fell 10.5%. Net assets were down by $28.2 billion to $391.6 billion. “Due diligence is not a guarantee of success,” said Emond, adding that he empathizes with fellow investors who also had their funds frozen during Celsius Network’s bankruptcy process. He attested the cryptocurrency community as a sector undergoing a “transition,” but insisted that CDPQ staff made the right decisions in the absence of unforeseen information.
Sponsored · Nord Precious Metals
Information for this briefing was found via Bloomberg. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
