- Bankruptcy examiner released a report on Celsius’ wrongly advertised business model.
- Report claims the company did not “deliver” on its promises regarding its native CEL token.
- The examiner was appointed to investigate Celsius’ deposit reports and customer allegations.
Shoba Pillay, an examiner appointed by the US judge in Celsius Network’s bankruptcy case, published a 689-page report on January 31, claiming that Celsius did not operate according to the model it advertised and sold to its customers.
After interviewing employees and stakeholders, including the company’s founder, customers, and vendors, Pillay concluded:
In every key respect — from how Celsius described its contract with its customers to the risks it took with their crypto assets — how Celsius ran its business differed significantly from what Celsius told its customers.
The report stated that Celsius and its former CEO, Alex Mashinsky, who is currently facing fraud charges, have failed to “deliver” on its promises concerning its native CEL token and other business activities, since its inception.
Moreover, Pillay’s report revealed Celsius’ stablecoin deficit amounted to a billion-dollar hole in its assets between May ...
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