Last year, the Bankruptcy court appointed Shoba Pillay as Examiner to investigate whether crypto lender Celsius was a Ponzi scheme. While her conclusion in her 476 page final report doesn’t state whether or not it was a Ponzi scheme, she wrote, “The business model Celsius advertised and sold to its customers was not the business that Celsius actually operated.” The Examiner alleges numerous false claims by Celsius and its former CEO Alex Mashinsky in particular. Mashinsky is being sued for fraud by the U.S. Attorney General.
One of the most devastating criticisms relates to the company’s own token CEL. Much like FTT in the case of the collapse of FTX, the token played a role in the firm’s collapse. That is combined with a lack of records and very poor risk management.
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