Canada’s 2nd Largest Pension Fund Embroiled in Celsius Collapse

The collapse of Celsius continues to ripple throughout the world of finance. 

Canada’s second-biggest pension and insurance fund the Caisse de Dépôt invested $150 million into Celsius nine months before its Chapter 11 bankruptcy. Now, the fund may be left empty-handed.

The Caisse de Dépôt—which registered net assets of $419.8 billion at the end of 2021—was one of two lead investors alongside venture capital firm WestCap in Celsius’ $400 million Series B funding round back in October 2021, a raise that saw the crypto lender top a $3 billion valuation. 

“This is something that we take very seriously and we will provide further comment at the appropriate moment. Celsius is currently engaged in a complex process that will take time to resolve,” a spokesperson from the Caisse told Bloomberg in July.

The pension fund is expected to give its mid-year report, outlining the extent of the damage this month.

At the time of investment, the Caisse heaped praise on the crypto lender, referring to them as a “leading global cryptocurrency earning and borrowing platform.”

The investment would reportedly be used to “expand [Celsius’] offerings and products, connecting traditional capital markets with those of the cryptocurrencies.”

Regulators circle amid Celsius collapse

The Canadian pension fund is likely less complimentary of the crypto lender since its collapse in July. 

Celsius’ calamitous demise in July this year sent catastrophic financial reverberations throughout the cryptocurrency and associated markets, with a debt to creditors and clients of over $5.5 billion. 

Given the size of the pension fund involved, the Québec Autorité des marchés financiers (AMF) and the Ontario Securities Commission (OSC) have begun a joint investigation with the U.S. Securities and Exchange Commission (SEC) to investigate the economic fallout of the Celsius’ bankruptcy case within their respective territories, according to The Financial Post. 

The AMF and OSC are particularly interested in obtaining information regarding the number of users within their regions that utilized the lending platform, and consequently became victims of financial losses.