According to the Wall Street Journal, Celsius Network is likely to fight its financial battles on its own. The crypto lending firm will not be bailed out by its investors, which include the Caisse de dépôt et placement du Québec (CDPQ) and WestCap Group.
Celsius found itself in a difficult situation when it paused withdrawals and other transactions, leaving its nearly two million users unable to access their funds.
Now, five state security commissions have launched investigations into Celsius for the same. The five states include Alabama, Kentucky, New Jersey, Texas, and Washington.
More funds are required to bail the platform out of troubled waters. But the report stated that current investors are either willing to wait for a Celsius acquisition or a platform restructure.
According to one person familiar with the discussions between Celsius and its investors, “Few are feeling OK about things. There was more risk in this than fully appreciated.”
Celsius’ Series B funding round of $400 million last year was led by Caisse de dépôt et placement du Québec, a major Canadian pension fund, and the New York-based WestCap Group, raising the firm’s valuation to $3.5 billion.
