- A new lawsuit claims that the embattled cryptocurrency platform Celsius is an illegal Ponzi scheme.
- Jason Stone, the CEO of a company Celsius acquired, claims that it did not hedge risk properly and also manipulated the market.
- The lawsuit was filed following Celsius shut down the ability of users to withdraw their accounts.
An investment manager from the past at Celsius is going after the bankruptcy-plagued crypto lending platform accusing it of committing fraud and is calling it an Ponzi scheme.
Jason Stone, the CEO and co-founder of Defi company KeyFi that later Celsius purchased in 2020, filed this complaint at New York on Thursday. The team was charged to receive “hundreds of millions of dollars of customer deposits” from Celsius to invest. However, the deal was made without formal written agreement, as per the suit.
Stone says Celsius of not having fundamental safety and management procedures in place. He claims Celsius owes money to his business and thousands of its customers.