Celsius Was Allegedly Propping Up It’s Own Crypto Token With Customer Funds
Pillay wrote that Celsius effectively acted as a, borrowing from an unwitting Peter to shove crypto in Paul’s pockets. Pillay wrote that since it did not make enough on its crypto deployments, it started using customer-deposited funds to buy back CEL. This, plus an ineffective tracking system, led to shortfalls in 2021. The company again used customer funds to buy stablecoins meant to plug the hole. Over four years, from 2018 to June of 2022, the company was obligated to pay $1.
The fall of FTX was categorized by how both the crypto exchange and its CEO Sam Bankman-Fried were so willing to use customer funds to support its endeavors. This included propping up the hedge fund Alameda Research, as well as allowing FTX execs to lead lavish lifestyles, according to documents and the people handling the company since it declared bankruptcy in November last year.The apple, or perhaps the crypto token, doesn’t fall too far from the Merkle tree.
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