Celsius Network acted as a bank in the crypto world. Clients could deposit their crypto assets there and receive an annual income of up to almost 19%. They can also get crypto or cash loans by depositing their crypto assets with Celsius as collateral.
Caisse de depot et Placement du Québec (CDPQ) announced a $400 million funding round with Celsius last October. A Radio-Canada investigation found that Caisse’s involvement was US$150 million.
Celsius abruptly froze withdrawals from its platform on June 12th. From this date, clients can no longer withdraw their crypto assets from the platform. On June 13, Celsius announced that it had filed for bankruptcy protection in New York State.
Letters addressed to Judge Glenn come from all over the world, from Finland, through India, Australia, Belgium and South Korea. Radio-Canada was unable to find reviews from Canadian customers, but some customers did not indicate where they live.
Today, these clients believe they have lost everything and are asking the court to allow them to recover their funds.
I am 50 years old and work in the healthcare industry. I don’t have much savings compared to others, but it’s a significant amount for me and my family.writes a woman who claims to have invested the equivalent of $19,000 in cryptocurrencies in Celsius.
I’m upset, I can’t sleep, my husband doesn’t know what happened. Please give us justiceshe continues.
A client based in India claims to have deposited around $14,000 in crypto assets with Celsius. This amount is huge for an Indian. The average Indian earns $5,000 a year.he said.
I was very stressed and suicidal as Celsius blocked the withdrawal. I am the only breadwinner in the familyhe continues.
An Australian client claims she deposited funds with Celsius while expecting a new baby.
I planned to withdraw my funds from Celsius to help pay for my aunt’s childbirth and surgery at the end of June, but since [Celsius] suspended withdrawals, I no longer have access to my money and my life has become miserable. I’m worried that my stress caused by the situation in Celsius will affect my child’s health.
In her letter to Judge Glenn, the client included a screenshot of an email she sent to Celsius customer service on June 15, pleading with the company to make an exception and allow it to withdraw its claims.
In an attempt to convince the agent, she included a photo of her baby’s ultrasound.
Another U.S. client who invested between $40,000 and $50,000 in Celsius says he found out his funds were frozen while he was at the gym.
I collapsed to the ground with my head in my hands and fought back tears. I did my best to go to work and see my colleagues that day. I couldn’t concentrate on my work. It was like a nightmare. However, it wasn’t nearly as bad as when I got home to meet my family.He wrote.
In October 2021, Celsius CEO Alex Mashinsky said that the investment Caisse was involved in increased the company’s credibility.
[Ce qui est important]it’s not $400 million, it’s the trust that comes with the people who signed the checkshe said then.
A few months later, he said on a podcast that in due diligence [vérification préalable] CDPQ is what other people rely on to decide if Celsius is a company they can trust..
This is the case of a client who sent a letter to Judge Glenn, who claims to have placed all of his savings in Celsius, noting the reputation of the company’s business partners.
When I saw companies [qui ont des équipes affectées à la due diligence] having invested hundreds of millions of dollars in Celsius, I began to place most of my crypto assets on the platformhe writes before confessing be ashamed for recommending Celsius to friends and family.
Caisse has been relatively silent on Celsius’ failures since May. However, CDPQ head of media relations Maxime Chagnon sent a statement to Radio-Canada on Wednesday morning.
The process that Celsius is involved in is complex and will take some time to unravel. As always, our first concern is to protect the interests of our contributors, the people of Quebec. Our teams are working hard to protect our rights, taking into account the ongoing legal process.pointed out Mr. Chagnon, recognizing that the fund’s investments raises several questions.
He added that some of our investments, such as Celsius, are not delivering the expected results.
Joining Friday afternoon to comment on customer testimonials filed in court this week, Caisse did not respond to our inquiries.
Celsius did not answer our questions.