Regulators in Canada have joined the United States jurisdictions in investigating the collapse of Celsius Network LLC. The multi-billion dollar cryptocurrency lender recently filed for bankruptcy and owes more than $4 billion to users.
Sources of the probe close to Financial Post revealed that Quebec’s Autorité des marchés financiers (AMF) have been digging into the Celsius Network collapse since June. Sources say the AMF’s investigation is being driven, in part, by the fact that the province’s largest pension manager, the Caisse de dépôt et placement du Québec, invested $150 million in Celsius in October 2021.
Sylvain Théberge, director of media relations at the AMF, declined to comment on AMF’s interest in the Celsius case.
Théberge said in an email statement. “We never deny or confirm if an investigation is underway.”
When the Caisse de dépôt invested in Celsius in 2021 as part of a US$400-million financing round, they called Celsius Network a “leading global cryptocurrency earning and borrowing platform.” The Caisse de dépôt also said the money would be used to “expand its offerings and products, connecting traditional capital markets with those of the cryptocurrencies.”
Officials of Caisse have not commented on their investment in Celsius, but say they will at an “appropriate” time.
AMF/SEC Investigation so far
Since the matter spans the Canada/U.S border, Canadian regulators are collaborating with the SEC in the investigation. The SEC is also working with regulators in several states, including Texas, according to Financial Post.
On the retail front, AMF is focused on users in the province who have money tied into Celsius. The Ontario Securities Commission has a similar interest in whether the Celsius collapse affected Canadians, according to sources.
Celsius Network amassed 1.7 million clients in its five years of existence. Upon going bankrupt, Celsius owes its users around $4.7 billion, according to its bankruptcy filing. There’s an approximate $1.2 billion hole in its balance sheet, according to CNBC.