Cryptocurrency loan company Celsius It put withdrawals on hold in June. Various regulators launched an investigation after the company filed for bankruptcy. The latest research of the US Department of Justice is that the 5 billion dollar project ponzi scheme determined to use a similar method.
Crypto loan firm Celsius defrauding its investors?
The strategy of Celsius, a fast-growing cryptocurrency lending firm founded in 2017, against its investors appeared. The Vermont Department of Financial Regulation in the USA, which started an investigation into the New York-based stock market, found that low-budget investors were paid from the accounts of wealthy investors.
The research report, which states that “at some points, the returns to existing investors were probably paid with the assets of new investors”, thinks that especially middle-class citizens were defrauded. $5 billion Celsius, which is said to have a fortune, was found to have assets worth $ 1.2 billion before it went bankrupt.
Researchers also likened Celsius’ credit system to a ponzi scheme. (In the Ponzi system, investors believe that it is a high-profit product. However, the payments of the investors are made with the money of those who join the system later.)
Celsius CFO Chris Ferraro said they started making losses in 2020 and 2021. bankruptcy in May 2022 said they did. He did not admit that Celsius’ loans to investors were wrong. But State and federal securities law required much more detailed information.
In addition, in the bankruptcy filing, which was previously sent to the US regulatory agency SEC, it was stated that more than 100 thousand customers would be paid between 1 and 10 billion dollars. Let’s also underline that customers do not get their money.
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