Celsius Invests Large Amounts of Customer Money in Its Mining Business

Jul 15,2022
KingData News: Kadhim Shubber, a reporter for the Financial Times, wrote that Celsius only raised $600m last year, not $750m as it said at the time. The journalist revealed that Celsius CEO Alex Mashinsky had insisted last year that Celsius would not trade customer funds. However, Mashinsky stated in the aforementioned document that "Once cryptocurrency is transferred to Celsius, except assets transferred pursuant to Custody Service, Celsius has title to the asset and the complete authority to use the asset as it sees fit" . One of the things Celsius did with a huge chunk of its customers funds was invest it in its own mining operation through a $750m credit line. $576M was outstanding as of May.
On June 13, digital asset lending platform Celsius Network announced that it would suspend all withdrawals, swaps and transfers between accounts due to extreme market conditions. On the same day, Etherscan data showed that Celsius transferred a total of approximately 111,815 ETH to FTX over the last three days. This indicator provides a real-time tracking of Celsius' funding crisis.
17,482Follow
21,778

Recommend

More