CELSIUS, JUST ANOTHER PONZI SCHEME ? ACCUSATIONS WITH FAR-REACHING CONSEQUENCES !

Hi friends !

Lights and shadows for Celsius... Celsius Network's (CEL) situation seemed to have improved with the recent repayment of its IAD loan. This not only saved almost 22,000 bitcoins from liquidation, but even allowed it to recover them. However, new accusations and a complaint are once again clouding Celsius' future.

CELSIUS ACCUSED BY EX-EMPLOYEE OF BEING NO BETTER THAN A PONZI SCHEME Ever since Celsius Network announced that it was blocking withdrawals of its customers' crypto-assets on June 13, the (at least immediate) future of the cryptosphere has seemed tied to its fate. Since the beginning of July, the news seemed rather good, with loan repayments.

But then came the bad news. On July 7, a complaint was filed against Celsius Network. The company KeyFi Inc, founded by Jason Stone, accuses the lending service of fraud. In addition, Celsius owes him several million dollars for its services.

Indeed, Jason Stone is also a former contractor of Celsius, in 2021. He is now obviously furious. And he's not taking it easy on his ex-employer. Indeed, he frankly uses the term Ponzi (pyramid scheme) to describe Celsius. "Prior to the Complainant's arrival [at Celsius], the Defendants had no unified, organized or comprehensive investment strategy other than to lend out the consumer deposits they received. Instead, they were desperate to find a potential investment that could earn them more than they owed their depositors. Otherwise, they would have to use the new deposits to pay the interest owed on previous deposits, a classic "Ponzi scheme."

Excerpt from KeyFi's complaint against Celsius. Source: https://www.nycourts.gov/

A $200 MILLION HOLE ALREADY IN 2021 ? In the complaint, Jason Stone claims that when he stopped working for Celsius in April 2021, the company already had a cash flow hole of "$100 to $200 million". Jason Stone also identified himself on Twitter: he was hiding behind the anonymous account @0x_b1

Celsius seems to be far from getting out of the rut in which the lending service seems to have put itself, if Jason Stone is to be believed. Although the Terra (LUNA) disaster and its UST stablecoin did not help, this event may have been the last (big) straw. Will Celsius customers ever see their cryptos again, or are we in for an endless Mt Gox 2.0?

What are your views about this ?

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