10 months ago
1 min read
Celsius faces criticism for allegedly misusing funds, misleading investors in bankruptcy case
Bankrupt cryptocurrency lender Celsius Network is facing allegations of misleading its investors and using new customer funds to cover outstanding withdrawals. This comes from an independent examiner appointed by the New York bankruptcy court, Shoba Pillay, a former federal prosecutor and partner at Jenner & Block law firm. Pillay was tasked with investigating the New Jersey-based lender’s operations to determine if it was operating as a Ponzi scheme. Celsius filed for Chapter 11 bankruptcy protection in July, with a court filing revealing $2.8 billion in liabilities on its balance sheet. Despite co-founder Alex Mashinsky’s claims that customers’ Bitcoin was 100%