US Bankruptcy Examiner Says Celsius Faked Its Business Model
Main page News, US Market, Ponzi Scheme, business, Celsius Network

Bankrupt cryptocurrency lending firm Celsius Network might have misled its clients when it was advertising services, knowing that its balance sheet was suffering a $1 billion liquidity hole, Reuters reports.

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A former prosecutor, Shoba Pillay, who was appointed by the court as an independent examiner of the case, said that Celsius Network had a billion-dollar hole in its stablecoin reserves at least since May 2021.

In November last year, Judge Martin Glenn of the US Bankruptcy Court in New York gave a green light to the official committee of Celsius creditors to investigate, whether Celsius Network operated as a Ponzi scheme. The creditors committee's lawyer, Greg Pesce, said "there are flags" that Celsius was a Ponzi scheme.

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Celsius filed for bankruptcy under Chapter 11 of the US Bankruptcy Code in July last year. The company said the restructuring would help it "maximize value for all stakeholders." As per court documents, Celsius owes creditors more than $4.7 billion.

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