Supervisory authorities in Canada and the United States launched an investigation into the financial activities of Celsius. Regulators will check the crypto lender for possible violations against citizens of Quebec and other provinces of the country.
A source familiar with the matter told the Financial Post that the investigation began immediately after Celsius suspended the withdrawal of client assets before filing for bankruptcy.
The source claims the investigation is linked to Quebec’s largest pension fund, Caisse de dépôt et Placement du Québec (CPDQ), which invested $150 million in Celsius. CPDQ’s investment in October 2021 was instrumental in boosting Celsius’ market capitalization to over $3 billion.
The investigation will focus on whether Quebec users’ money is blocked in Celsius. Autorité des Marchés financiers (AMF) Communications Director Sylvain Théberge neither confirmed nor denied the Celsius audit rumors.
Despite an investigation by Canadian authorities, Celsius is not registered in any of Canada’s provinces. Therefore, regulators work closely with the US Securities and Exchange Commission (SEC) to detect violations of the laws by the creditor.
Not only regulators, but also law enforcement agencies are actively checking the activities of Celsius. Last month, the New York City Attorney’s Office urged crypto customers to report any violation of their rights by crypto lenders such as Anchor, Celsius, Voyager and Stablegains.
Source: Bits
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