Caisse de dépôt et placement du Québec (CDPQ), the largest pension fund in Canada, has written off its investment in failing cryptocurrency lender Celsius, admitting that it entered the market “too soon.”
Wednesday in Montreal, CDPQ CEO Charles Emond stated that the pension fund made an early investment in the “in transition” cryptocurrency industry.
The CEO added that before making a cryptocurrency investment, the fund exercised caution and due diligence. Emond made a remark about it.
“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.”
Nearly a year has passed since the pension fund invested in Celsius when Emond made his remarks. The crypto lending platform received an investment of $400 million in October 2021 from CDPQ and growth equity firm WestCap, with CDPQ contributing $150 million of that total.
However, after halting withdrawals in June, Celsius filed for Chapter 11 bankruptcy protection in the US in July 2022. Emond stated that the business is analyzing its “legal possibilities” in the interim.