August 9, 2022

The Queens County Citizen

Complete Canadian News World

Celsius, a partner of CDPQ, is protected by bankruptcy law

Celsius, a partner of CDPQ, is protected by bankruptcy law

This gives the Celsius potential To stabilize its operations and carry out restructuring [en profondeur] It adds value to all [ses] ShareholdersAccording to the same press release.

On its website, Celsius says it wants to Grow stronger as a company.

It’s the right decision for our community and our business.Said CIO Celsius, Alex Mashinsky, in a press release. I am hopeful that as we look back on the history of Celsius, we will see it as a defining moment in which we acted with determination and confidence to serve our community and strengthen the future of our business.He added.

Two new directors have been appointed at the helm of the firm, which has also retained three advocacy groups as advisers, the press release said. All are experts in financial restructuring.

Celsius has some US$167 million in cash, which will be used, according to the statement Supports some operations during the reconstruction process. Celsius said it has asked the court to continue the salaries of its employees.

At the time it announced it was pausing client withdrawals on June 12, Celsius was managing US$12 billion worth of cryptocurrencies on behalf of its clients, the website said. From that date, they can no longer withdraw their funds. Celsius confirms on its website that this freeze will continue throughout the financial restructuring process.

Celsius acts as a sort of bank in the crypto world. Clients can deposit cryptocurrencies there and earn annual returns on their deposits. They can also get crypto or cash loans by pledging cryptoassets as collateral.

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

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

The Caisse did not want to say how much money was allocated for this investment, but a Radio-Canada investigation was able to confirm that the amount was 150 million US dollars.

We are following the file closely and reviewing the documentation provided by Celsius. We cannot comment further at this time.spokeswoman Kate Monfet told us CDPQ.