The independent examiner from Celsius reveals amazing facts about internal discrepancies

The independent examiner from Celsius reveals amazing facts about internal discrepancies

Celsius has given up its promise of transparency right from the start, said former prosecutor Shoba Pillay, which was appointed an independent examiner by the US bankruptcy judge Martin Glenn.

In a file, Pillay explained that the bankrupt crypto company had managed its business in every important way in a completely different way than she marketed itself to her customers.

The report said that Celsius does not have sufficient risk management function and was unable to pursue his financial situation or to evaluate profitability. It was also found that Celsius and his founder Alex Mashinsky, who is currently facing allegations of fraud in the United States, who have not complied with generous promises.

very ponzi-like operations

The examiner interviewed Celsius employees, including the former CEO Alex Mashinsky, as well as customers and suppliers of the company to clarify whether it is operating a Ponzi system. Pillai explained that Celsius exaggerated the price of his local token to "to get the ratings in order to be able to sell back to the company".

Celsius admitted that customer money should not be touched to buy the coins that are necessary to cover liabilities to other customers. The company continued to fill the billion hole in the balance sheet with customer deposits. The company justified this with the fact that it deposited customer deposits as security in order to borrow the necessary coins instead of selling them.

The proceeds were then used to continue buying CEL.

In April 2022 Celsius Coin Deployment Specialist Dean Tappen himself described the company's practice to "use customer staff" and "cut customer coins" to buy CEL as a "very ponzi-like". Pillay also claimed that the employees were aware of the discrepancies in relation to the funds, but decided to remain silent about it.

In addition, Celsius never liquidated one of his CEL to cover his liquidity requirement, even when it tried to find liquid assets, which led until June 12, 2022 when all customer withdrawals paused.

When he talked about Mashinsky, a manager of the company was even cited with the words:

"We spent all our money to pay and try to support managers [sic] net value in Cel-token."

who is coins?

Mashinsky has shown his current and potential customers on several occasions with expressions such as "their coins", "My coins" or "their crypto" that crypto-assets belonged to them and not Celsius. The manager retired completely during the survey by the examiner. Instead, he explained that

"100 % of the actions are our actions (the customer) cannot carry out any actions on the platform."

Pillai continued that Celsius tried to cut some of the faulty information from the recorded AMA videos later. However, no inaccurate or misleading statements were withdrawn or otherwise corrected that were made during the live view of AMAS or before implementing changes.

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