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CEL-USD.CC
id: 257, Created by Mr Cryptoinspector, Scout

Celsius $CEL Fraud Case

D. New Jersey
Court
Since February 9, 2018, Celsius, through its affiliates Celsius Lending LLC and Celsius KeyFi LLC, has been:
  • funding its lending operations and proprietary trading through the sale of unregistered securities in the form of Earn Rewards Accounts and CEL tokens.
  • promising a better-than-market interest rate that is paid in cryptocurrency in exchange for investing in the Earn Rewards Accounts.
  • held the equivalent of over $25 billion on the peak from the sale of unregistered securities.
In June 2022 Celsius announced that due to extreme market conditions, it was pausing withdrawals, swaps and transfers between accounts. Celsius did not have enough assets to meet its withdrawal obligations and could only maintain its yield rate promises by continually bringing in new investors whose new influx of money would be used to pay off the yield for old investors.
On June 16, 2022, CNBC in its article reported that "State securities regulators in Alabama, Kentucky, New Jersey, Texas, and Washington are investigating crypto lender Celsius Network’s decision this week to suspend customer redemptions.
Earlier the same month, Business Insider wrote in its article that Jason Stone, the CEO of a firm Celsius acquired is suing the crypto lending platform, alleging it committed fraud and calling it a Ponzi scheme. Stone has alleged, among other things, that Celsius CEO Alex Mashinsky was “able to enrich himself considerably.”
Taking all facts, representations, and authorities' responses into account there are grounds for suspecting the leaders and stakeholders of the Company business misconduct, in particular:
  • Sale of unregistered securities in violation of federal and state securities laws.
  • A series of misleading statements induced unsuspecting investors to purchase Celsius Financial Products at inflated rates.
  • Conducting a "Ponzi scheme" to meet promises to current investors.
  • Breach of Fiduciary duties by the employment of unscrupulous business schemes and proprietary trading operations.
  • Financial misrepresentations.

Alleged Offence
Mismanagement
Misleading Statements
Financial Misrepresentation
Fraud
Failure to Disclose
Price manipulation
Malpractice
Negligence
Breach of Fiduciary duty
Omissions
Suspected Party
Directors
Management
Shareholder
Influencer
Service Provider
Security Type
Crypto Asset
Trade Direction
Long
Shock Event Date
09 September 2022
Collecting participants…
Created by Mr Cryptoinspector, Scout

Case history

Stan Vick
07 September 2023
$CEL Case Update:
  • The government has frozen the assets of the founder of the insolvent Celsius Network.
  • This action comes as part of a criminal case against him, where he faces charges of deceiving customers regarding certain aspects of $CEL operations and conspiring to artificially inflate the value of its primary cryptocurrency token.
Stan Vick
22 September 2023
  • Celsius Network Ltd. informed a New York judge that it had successfully negotiated an arrangement with a digital coin staking company.
  • This agreement has provided $CEL with additional funds to address its operational requirements and averted potential legal disputes related to a temporary restraining order.
Stan Vick
26 September 2023
Celsius Networks is facing new opposition to its Chapter 11 plan, with creditors objecting to provisions giving them equity in a new $CEL company and other proposals.
Stan Vick
29 September 2023

Celsius Faces Scrutiny in Chapter 11 Plan

NY bankruptcy judge informed Celsius Network's counsel that they must demonstrate the attractiveness of returns for $CEL holders when seeking approval for its Chapter 11 plan next week.

Celsius

Celsius (CEL)is a platform that allows users to trade currency against the cryptocurrency and yield interest. The platform aims to disrupt the financial industry, provide curated services to the us...

Symbol
CEL-USD.CC
Category
token
MarketCap
$42M
All Time Low
$0
All Time High
$8