Canadian Regulators Investigating Crypto Lender Celsius’ Collapse Alongside US: Report

Canadian regulators are working in tandem with their American counterparts to investigate the impact of New Jersey-based crypto lender Celsius Network’s multi-billion-dollar collapse, according to a Financial Post article.

Although Celsius never registered with Canada’s provincial securities regulators, Canadian authorities are working with the U.S. Securities and Exchange Commission to investigate the trans-border issue, the Financial Post reported Tuesday. Regulators have launched across jurisdictions in the U.S. and Canada to look into the insolvent lender’s post-crash actions.

The Ontario Securities Commission (OSC) is also investigating how the firm’s collapse and subsequent bankruptcy has affected the trading platform’s Canadian users.  In Quebec, the Autorité des Marchés Financiers (AMF) is investigating the ramifications of Celsius’ mid-June effort to freeze withdrawals.

The SEC did not immediately return comment. The OSC was not immediately available for comment.

Celsius Network, a crypto lending empire that once owned $28 billion in assets under management, lost 88% of its assets in its mid-June crash, sending shockwaves through the wider crypto ecosystem and prompting similar withdrawal pauses at dozens of other crypto exchanges around the world.

The firm filed for bankruptcy protection in July; it has told the court it owes its users about $4.7 billion. Among the long list of investors who have lost their funds in the collapse is the Caisse de Dépôt et Placement du Québec, Quebec’s largest pension manager, which invested $150 million in the firm last fall.

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