Celsius Network was a ‘Ponzi scheme,’ company’s former investment manager alleges in lawsuit

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Jason Stone, who managed Celsius’ Defi investments, alleges the crypto lender did little to protect customer assets and used deposits to prop up its own coin.

Beleaguered crypto lender Celsius Network operated as a classic “Ponzi scheme,” the former head of the company’s key investment strategy alleged in a lawsuit, claiming the company used customer deposits to cover huge liabilities caused by reckless mismanagement.

“The unfortunate events that have publicly unfolded in recent weeks show that … Celsius grossly mismanaged its customer funds, failed to perform basic internal auditing to account for its obligations, and manipulated crypto-assets to the benefit of itself and its principals,” the suit claimed. After Stone stopped working with Celsius, Mashinsky transferred valuable NFTs from the accounts Stone previously controlled to a wallet belonging to Mashinsky’s wife, the suit claims.

 

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I feel The lawsuit calling Celsius a Ponzi scam is hurting all of us account holder’s. I feel we need to support Celsius by being team players and support their efforts in restructuring and recovering so we have our crypto/funds back.

Care to respond CelsiusNetwork Mashinsky? As someone with crypto stuck in your network, I'd appreciate it.

All the while creators probably sold the lions share of their coins to unwitting buyers….. modern day snake oil Celsiusmen CelsiusNetwork

We need a strong market

You are my source of inspiration, when all hope was lost you brought life to me again with your amazing signals. $6000 is more than enough to start life again herbertr_sim

Is this the celsius drink? Is this why he’s not getting me AS jacked up as it was a few months ago ZTank305

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