Celsius, partner of the CDPQ, places itself under the protection of the insolvency law

This will give Celsius the ability to stabilize its activities and carry out a restructuring [en profondeur] that will maximize the value for everyone [ses] shareholdersaccording to the same press release.

On its website, Celsius claims to want to Emerge stronger as a company.

It was the right decision for our community and for our business.he said chairman by Celsius, Alex Mashinsky, in a press release. I am confident that as we look back at Celsius’ history, we will see this as a pivotal moment when we acted with determination and confidence to serve our community and strengthen the future of our company.he added.

The press release alleges that two new directors have been appointed to head the firm, which also retained three legal teams as advisors. All are financial restructuring experts.

According to the statement, Celsius holds around $167 million in cash that will be used Supporting certain operations during the restructuring process. Celsius said it asked the court to keep paying its employees.

At the time of announcing the suspension of customer withdrawals on June 12, Celsius was managing around $12 billion worth of crypto assets on behalf of its customers, according to the company’s website. Since that date, they can no longer withdraw their money. On its website, Celsius confirms that this freeze will continue throughout the financial restructuring process.

Celsius acts as a kind of bank in the crypto world. Customers can deposit crypto assets there and earn an annual return on their deposits. They can also get crypto or cash loans by depositing cryptoassets as collateral.

Last week, a former business partner accused Celsius of being a fraudulent Ponzi scheme (or pyramid scheme) in a lawsuit filed in upstate New York.

In October 2021 the CDPQ announced that it is part of a $400 million funding round led by a private investment firm in Celsius.

The Caisse would not say how much money it spent on this investment, but an investigation by Radio-Canada was able to determine that the amount was US$150 million.

We are following the file closely and reviewing the documentation provided by Celsius. We are unable to comment further at this time.told us Kate Monfette, spokeswoman for the CDPQ.

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