- Complainant claims Celsius ran a Ponzi scheme to enrich itself.
- Celsius completes maker protocol loan repayment.
On Thursday, a former employee of Celsius network instituted legal action against the crypto lender. The employee said the company was using customer deposits to change the price of its native token. Hence, it couldn’t hedge risk properly, which explains why the company had to pause withdrawals.
Details of the court filing
According to the court filing, Celsius was running a Ponzi scheme by grossly mismanaging customer deposits to make profits. Jason Stone’s KeyFi Inc. is suing Celsius; Stone was Celsius’ former investment manager. He claims that Celsius owes him millions of dollars in unpaid services he provided for it.
Stone filed the lawsuit in Manhattan’s New York state court. However, the complainant didn’t specify the exact amount he was owed by Celsius. Also, he didn’t suggest any punitive measures for the crypto lender for failing to pay him. Nevertheless, Celsius has yet to make any comment regarding the matter.
Lawsuit filed by KeyFi vs @CelsiusNetwork in New York today, with damning allegations going back to March 2021, more than a year before the Luna/UST collapse. Verbatim quotes from the pleading in the thread below: 1/24 pic.twitter.com/kgA7dqHW6p
— Cory Klippsten (@coryklippsten) July 7, 2022
Stone’s allegation comes amidst the…
