Celsius Network acted as a bank in the crypto world. Customers could deposit their cryptoassets there and achieve an annual return of up to almost 19%. They could also get cryptocurrency or cash loans by depositing their cryptoassets with Celsius as collateral.
Caisse de Depot et Placement du Québec (CDPQ) announced that it was participating in a $400 million funding round with Celsius last October. An investigation by Radio-Canada had revealed that the Caisse’s involvement amounted to US$150 million.
Celsius suddenly froze withdrawals from its platform on June 12. Since that date, customers can no longer withdraw their cryptoassets from the platform. On June 13, Celsius announced that it was filing for bankruptcy protection in New York State.
Letters to Judge Glenn come from all over the world, from Finland to India, Australia, Belgium and South Korea. Radio-Canada could not find any testimonials from Canadian customers, but some customers do not indicate where they live.
These customers now believe they have lost everything and are begging the judge to allow them to get their money back.
ans et suis travailleuse dans le domaine de la santé. Je n’ai pas beaucoup d’économies comparativement à d’autres, mais c’est un montant considérable pour moi et ma famille”,”text”:”J’ai 50ans et suis travailleuse dans le domaine de la santé. Je n’ai pas beaucoup d’économies comparativement à d’autres, mais c’est un montant considérable pour moi et ma famille”}}”>I am 50 years old and work in the health sector. I don’t have a lot of savings compared to others, but it’s a significant sum for me and my familywrites a woman who claims to have invested the equivalent of $19,000 in crypto at Celsius.
I’m frustrated, I can’t sleep, my husband doesn’t know what happened. Please do us justiceShe keeps going.
A client living in India claims to have placed around $14,000 in crypto assets at Celsius.
$US par année”,”text”:”Ce montant est énorme pour un Indien. L’Indien moyen gagne 5000$US par année”}}”>This amount is enormous for an Indian. The average Indian earns $5000 a yearhe said.
I am very stressed and suicidal since Celsius blocked withdrawals. I am the only breadwinner in my familyhe continues.
An Australian customer claims she placed money with Celsius while awaiting the arrival of a new baby.
I was planning to withdraw my money from Celsius to pay for my birth and an operation for my aunt at the end of June, but have since [Celsius] Withdrawals paused, I no longer have access to my money and my life has become miserable. I am worried that my stress caused by the Celsius situation will affect my baby’s health.
In her letter to Judge Glenn, the customer attached a screenshot of an email she sent to Celsius customer service on June 15, asking the company to make an exception and allow her to withdraw her claims .
To convince the agent, she had attached a photo of her baby’s ultrasound.
Another US client who invested the equivalent of $40,000-$50,000 in crypto at Celsius said he learned his funds had been frozen while he was at the gym.
I collapsed, my head in my hands, fighting back the tears. I did my best to go to work that day and see my colleagues. I was unable to concentrate on my work. It was like living a nightmare. However, it wasn’t nearly as bad as when I returned home and I had to face my family.he wrote.
A controversial investment
In October 2021, Celsius CEO Alex Mashinsky claimed that the investment, in which the Caisse was involved, gave the company a boost in credibility.
M$, c’est la crédibilité qui vient avec les gens qui ont signé les chèques”,”text”:”[Ce qui est important], ce n’est pas les 400M$, c’est la crédibilité qui vient avec les gens qui ont signé les chèques”}}”>[Ce qui est important]it’s not the $400 million, it’s the credibility of the people who signed the checks‘ he said at the time.
A few months later he said so on a podcast
due diligence [vérification préalable] de la CDPQ est ce à quoi d’autres gens se fient pour décider si Celsius est une compagnie à qui ils peuvent faire confiance”,”text”:”la due diligence [vérification préalable] de la CDPQ est ce à quoi d’autres gens se fient pour décider si Celsius est une compagnie à qui ils peuvent faire confiance”}}”>the due diligence [vérification préalable] of the CDPQ is what other people rely on to decide if Celsius is a company they can trust.
Such is the case of a client who sent a letter to Judge Glenn, who claims to have invested all of his life savings with Celsius after noting the reputation of the company’s business partners.
due diligence] investir des centaines de millions de dollars dans Celsius, j’ai commencé à mettre la plupart de mes cryptoactifs sur la plateforme”,”text”:”Quand j’ai vu des entreprises [qui ont des équipes affectées à la due diligence] investir des centaines de millions de dollars dans Celsius, j’ai commencé à mettre la plupart de mes cryptoactifs sur la plateforme”}}”>When I saw companies [qui ont des équipes affectées à la due diligence] After investing hundreds of millions of dollars in Celsius, I started putting most of my cryptoassets on the platformhe writes before he confesses
to be ashamed for recommending Celsius to friends and family.
The Caisse had been relatively silent on Celsius pullbacks since May. However, the CDPQ’s head of media relations, Maxime Chagnon, sent a statement to Radio-Canada on Wednesday morning.
The process Celsius is involved in is complex and will take some time to unravel. As always, our primary concern is protecting the interests of our depositors, Quebecers. Our teams make every effort to uphold our rights, taking into account the ongoing legal process.stated Mr. Chagnon, confirming that the Fund’s investment
raises several questions.
Some of our investments, like the one in Celsius, are not producing the expected results.
The Caisse, which joined on Friday afternoon to comment on client testimonies filed in court this week, has not responded to our inquiries.
Celsius did not answer our questions.