bitcoinBTC/USD
$ 23,426.28
ethereumETH/USD
$ 1,878.14
tetherUSDT/USD
$ 1.00
cardanoADA/USD
$ 0.531877
xrpXRP/USD
$ 0.380282
usd-coinUSDC/USD
$ 1.00

Former Asset Manager, KeyFi Files Lawsuit Against Celsius

Granit.M

Former asset manager, KeyFi files a lawsuit and claims Celsius is an elaborate “Ponzi Scheme” as they sue the troubled company on July 7th.

Celsius used client funds to raise the price of its own CEL coin and influence broader cryptocurrency markets, the lawsuit, filed in New York state court in Manhattan, claims.

However, due to its inability to adequately manage risk, the company is currently facing a liquidity crisis and withdrawals have been blocked.

KeyFi, which managed assets for Celsius until March of last year, filed the lawsuit which also claims that KeyFi services were not paid.

According to Jason Stone, a main plaintiff in the case, KeyFi formerly managed roughly $2 billion in assets for Celsius. During this time, the asset manager became aware of the fact that Celsius lacked risk hedging.

The lender’s liquidity crisis is a result of Celsius’s chronic lack of risk management – Stone stated in a Twitter thread.

Celsius has recruited restructuring counsel and is currently discussing a potential bankruptcy, according to recent rumors.

Celsius is now working to pay off its debts to several lenders. The platform just settled its debt with Maker DAO. However, it quickly moved $500 million in Wrapped Bitcoin to FTX. This might imply that Celsius is planning to dump the token in order to improve its liquidity.

While such a case may assist the lender to avoid bankruptcy, it would have a detrimental influence on Bitcoin(BTC) values. However, it is uncertain if the lender would be able to fully compensate its consumers.

Also read:

Related News

Ethereum’s Last Test Run Before the Biggest Crypto Event is Over.

The last practice run for Ethereum’s long-awaited update, which has been touted as one of the most significant events in the history of cryptocurrencies, was just completed.  The so-called proof-of-work technique has been used for mining Ethereum since the cryptocurrency was launched about a decade ago. It needs an excessive amount of energy as well as the solving of difficult mathematical problems by an enormous number of competing machines. The

Read More »

More trouble for Coinbase as the US Supreme Court rejects its appeal

The SEC is investigating Coinbase, the largest cryptocurrency exchange in the US, for allegedly listing securities on its platform. The Supreme Court’s denial of the exchange’s plea has caused yet another major problem. According to Bloomberg, the US Supreme Court rejected Coinbase’s request to submit its user disagreement to arbitration right now. It was said that the court’s request for the justices to intervene in the case was rejected. The

Read More »

Hodlnaut Has Become the Latest Crypto Lender Platform to Block Withdrawals

The cryptocurrency lending platform Hodlnaut, which is headquartered in Singapore, has halted withdrawals, token swaps, and deposits, blaming “current market circumstances.” This makes Hodlnaut the latest in a series of cryptocurrency companies to go out of business since May. According to the notice made on Monday, the business also stated that it will revoke its registration with the Monetary Authority of Singapore (MAS) to provide digital token payment services. According

Read More »

My Coins

bitcoinBitcoin
$ 23,426.280.14%
ethereumEthereum
$ 1,878.141.55%
cardanoCardano
$ 0.5318771.76%
tetherTether
$ 1.000.01%

Newest Videos on YouTube

We inform and educate people about Cryptocurrencies and Blockchain technology.

© Copyright 2021, All Rights Reserved,
Crypto Academy

Bitcoin

Contact Us

For any question conatct us through:

[email protected]

Disclaimer: All information and materials on this website are for educational purposes only. Crypto-academy.org does not provide any form of financial advice. Cryptocurrencies are highly volatile, therefore any form of investing carries a high level of risk to your capital. It is recommended that you seek professional advice prior to implementing any investment or financial plan.

We do not ask you for your Cryptocurrency / We do not hold your Coins / We do not ask for Private Keys / Be aware of scammers and imposters.

Contact us only through: [email protected]