Celsius: CDPQ may turn to court after losing $200 million

Celsius : the CDPQ could turn to the courts after losing $200M

The financial institution is now dealing this investment as a deadweight loss.

and (max-width: 99999px)”/>

Celsius Network recently filed for US bankruptcy protection.

The Caisse de depot et placement du Québec is analyzing the legal remedies it could take against the Celsius Network cryptobank, which swallowed an investment of some $200 million from the woolen stockings of Quebecers.

The president and CEO of the Caisse, Charles Émond, did not want to give details on the nature of the remedies he is considering, but one thing is already certain: the #x27;financial institution now treats this investment as a deadweight loss. Under the circumstances, it's an investment that I wrote off, he said at a press conference on Wednesday, when he presented the Caisse's first-half 2022 results.

In addition, the Caisse teams who carried out the analyzes and the due diligence required for such an investment will be accountable for their decisions, he added in response to a question in English on the same subject.

>

Celsius Network recently filed for US bankruptcy protection as it found itself with a $1.9 billion shortfall US dollars on its balance sheet.

Nobody at the Fund, me first, is happy with the outcome of this file. But this is an exception in our venture capital portfolio, Émond said, noting that this portfolio has returned 35% over the past five years.

View larger image

“Person at Checkout , me first, is not happy with the result of this file, ”admitted on Wednesday the big boss of the CDPQ, Charles Émond.

He explained this failure by a hasty decision in a context of runaway cryptocurrencies.

We arrived too early in a sector that was in transition with a company that had to manage extremely rapid growth, even a crisis of growth, which was in development, which became financially fragile just before the crisis and all that was too quick for the new management to execute the [recovery] plan.

“What we were interested in was seizing the potential of blockchain technology and also help regulate this sector. »

— Charles Émond, President and CEO of the CDPQ

Perhaps we were more focused on the company's potential than on the current status of things, he acknowledged. We knew that there were challenges in relation to the organization of the company, the necessary regulations, but perhaps we underestimated the time required, the effort required given the very significant growth of the company.

The CDPQ reported, on Wednesday, a loss of 33.6 billion dollars in its investments between January 1 and June 30, 2022, while net assets fell by 28.2 billion, from 420 billion to 392 billion during this period. Mr. Émond, however, was reassuring, arguing on the one hand that pension funds are fully funded and, above all, that half of this loss has been erased in the last 45 days thanks to a rebound. markets.

Leave a Reply

Your email address will not be published.

Previous post War in Ukraine: New strike against Russian installations in Crimea | War in Ukraine
Next post Immigrant Threatened Over License Plates Beginning With “1S1S”