A crypto mummy in the closet – The descent into hell continues for Celsius. The judge calls for an investigation into the allegations that the crypto lending platform is a Ponzi scheme.
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Celsius, a pyramid scheme: angry customer voices or breathless fraud?
It could or can only get worse! At the November 1 hearing, the judge ordered the examiner and the official creditors’ committee to investigate the clients’ allegations that Celsius is actually a Ponzi scheme.
Users of the platform have, in fact, accused the company of using the assets that new customers deposit, to remunerate the returns of existing customers.
The DeFi protocol Arbitrary had also previously accused the crypto lending platform of being a Ponzi scheme, when he filed a lawsuit against Celsius on July 7.
The independent examiner, whose appointment the judge approved on September 9 of this year, will thus have to shed light on this case. The situation is delicate for Celsius. Indeed, if these allegations are true, the company’s bankruptcy would not be solely due to the incompetence of its management or to the crypto winter, but to criminally reprehensible acts.
With colossal debts to pay and seven-figure legal fees, the Celsius case seems to be headed for a dead end, in the sense that creditors could lose part of their assets or will have to wait years before those responsible pay them their dues. Now is the time to settle accounts, with accusations that have serious consequences if proven.
The bad news is piling up for Celsius and especially for its customers… Need to find a serene environment to trade your bitcoins? Run to register on BinanceTHE absolute benchmark for crypto platforms (commercial link).