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

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

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

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

The press release maintains that two new directors have been appointed to the helm of the company, which has also retained three legal teams as advisers. All are experts in financial restructuring.

According to the statement, Celsius holds some US$167 million in cash, which will be used to support certain operations during the restructuring process. Celsius says it asked the court to continue paying its employees.

At the time of announcing it was pausing client withdrawals on June 12, Celsius was managing cryptoassets worth some US$12 billion on behalf of its clients, according to the website. the company. Since that date, they can no longer withdraw their funds. On its website, Celsius confirms that this freeze will continue throughout the financial restructuring process.

Celsius acts as a sort of bank in the crypto world. Clients can deposit cryptoassets there and earn an annual return on their deposits. They can also obtain crypto or cash loans by placing cryptoassets as collateral.

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

In October 2021, the CDPQ announced that it was part of a US$400 million financing round in Celsius, led by a private investment firm.

The Caisse did not want to say how much money it had devoted to this investment, but a Radio-Canada investigation was able to determine that this amount amounted to 150 million US dollars.

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