Investment firm WestCap and pension fund Caisse de dépôt et Placement du Québec will refrain from making new investments in crypto lending platform Celsius Network. This was reported by The Wall Street Journal, citing sources.

According to them, existing investors are willing to restructure or support the platform struggling from other stakeholders.

In October 2021, WestCap and Canada’s second-largest pension fund spearheaded a $750 million Series B Celsius funding round.

The platform’s accusations of selling unregistered securities were not recently stopped. Claims against the company came from regulators in the states of Texas, New Jersey, Alabama, and Kentucky.

Recall, on June 15, the publication reported that Celsius has hired lawyers from the firm of Akin Gump Strauss Hauer & Feld for a possible financial restructuring. The journalists emphasized that the initial purpose of the platform is to raise capital from investors.

According to The Block, the company turned to financial conglomerate Citigroup to address this issue.

On June 17, it became known that an investigation into the freezing of platform accounts had begun by the regulators of the five states.

Earlier, the expert described Celsius’ bankruptcy as almost inevitable.

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