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Canadian pension fund CDPQ explores legal options regarding bankrupt crypto firm

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Canadian pension fund CDPQ explores legal options regarding bankrupt crypto firm

The Caisse de Depot et Placement du Quebec (CDPQ) building is seen in Montreal, February 26, 2014. REUTERS/Christinne Muschi

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Aug 17 (Reuters) – The Caisse de depot et placement du Quebec (CDPQ), Canada’s second-largest pension fund, is considering legal options regarding bankrupt credit company Celsius and will no longer invest in crypto companies, a- she said Wednesday.

The CDPQ statement comes as the fund recovers from its failed investment in New Jersey-based Celsius, which filed for bankruptcy in July less than a year after receiving a $150 million investment from the fund.

“We will preserve our rights and explore legal options,” CDPQ chief executive Charles Emond said on an earnings conference call, adding that the fund had been focused on Celsius’ future potential. rather than current performance.

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Emond defended the fund’s investment and said he performed “extensive due diligence” on the company. “We were interested in seizing the potential of blockchain technology, but clearly things didn’t go as planned,” he said.

The CDPQ, which manages the pensions of several public sector bodies as well as other investments, reported investment losses and a drop in net assets for the first six months of the year, while increases in aggressive rates triggered turbulence in the stock and bond markets.

As of June 30, the fund’s net assets stood at $392 billion, up from $419.8 billion at the end of last year, he said.

CDPQ investments lost 7.9% in value during the period, compared to a return of 5.6% in the same period last year, when accommodative tax policies pushed stock prices to record levels.

“The first six months of the year have been very difficult,” Emond said, adding that the unstable conditions will persist for some time.

Last week, the Canada Pension Plan Investment Board also reported a decline in net assets in the first quarter as market turmoil weighed on its fund returns.

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Reporting by Niket Nishant in Bengaluru and Divya Rajagopal in Toronto; Editing by Devika Syamnath and David Holmes

Our standards: The Thomson Reuters Trust Principles.

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