Quebec’s pension manager broke its silence about its investment in Celsius Network LLC, saying it will “take time” to resolve claims around the bankrupt cryptocurrency lender but admitted the investment didn’t pan out.

Caisse de Dépôt et Placement du Québec invested $150 million in Celsius in October as part of a $400 million funding round co-led by WestCap Investment Partners LLC.

Equity holders are likely to be wiped out after Celsius filed for Chapter 11 bankruptcy protection in a U.S. court, a casualty of a meltdown in cryptocurrency prices that has wiped out a number of digital-asset lenders and platforms. Celsius disclosed last week that it has a US$1.19 billion deficit on its balance sheet, with US$5.5 billion of liabilities against US$4.3 billion of assets.

“We understand that our investment in Celsius raises a number of questions,” Caisse spokesperson Maxime Chagnon said in an emailed statement. “This is something that we take very seriously and we will provide further comment at the appropriate moment. Celsius is currently engaged in a complex process that will take time to resolve.”

The financing gave Celsius a valuation of more than US$3 billion, the Quebec investment firm said at the time. Changon said the Caisse is “making every effort to preserve our rights” but did not elaborate.

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