The Financial Post report of August 9 stated that Canadian authorities are collaborating with their American colleagues to investigate the consequences of the multibillion-dollar bankruptcy of New Jersey-based crypto lender Celsius Networks.
Canadian authorities collaborating with US government to study the case
Despite the fact that Celsius is never listed with Canada’s provincial regulatory agencies, Canadian authorities are collaborating with the United States Securities and Exchange Commission to examine the cross-border problem, according to the Financial Post, a Toronto-based publication. Investigations into the insolvent lender’s post-crash operations have begun in the US and Canada.
The Ontario Securities Commission (OSC) is also looking into Celsius’s failure and consequent bankruptcy, which impacted Canadian visitors to the site. In Quebec, the Autorité des Marchés Financiers (AMF) is looking into the implications of Celsius’ mid-June withdrawal restriction.
The SEC did not react quickly to a request for comment, just as the OSC did not answer quickly.
Celsius Network suffered 88% loss
Celsius Network, a cryptocurrency lending system that formerly managed $28 billion in assets, suffered an 88% loss of its assets in a mid-June crisis, sending shockwaves throughout the crypto world and leading several other cryptocurrency exchanges to halt client withdrawals.
In July, the company declared bankruptcy. It has informed the court that it owes $4.7 billion to its customers. The Caisse de Dépôt et Placement du Québec, Quebec’s biggest financial manager, invested $150 million in Celsius last November. They are among the many shareholders who have suffered losses in the crash.